MD HB1274

Regulates third-party litigation financing in Maryland by requiring written contracts with mandatory disclosures including financier contact information, itemized charges, total funded amounts, and repayment schedules in 6-month intervals over 42 months

Prohibits litigation financiers from charging interest exceeding Maryland's legal usury limits, paying or accepting referral fees, influencing litigation decisions, assigning or securitizing contracts, or providing legal advice to consumers

Requires mandatory disclosure of litigation financing contracts to all parties in a civil action, opposing insurers, and the court within 30 days of execution, with contracts subject to discovery regardless of whether litigation has formally commenced

Imposes fiduciary duties on litigation financiers in class action lawsuits to each class member and intended beneficiary, with attorneys required to disclose any relationships with financiers

Violations render contracts void and unenforceable, with enforcement by the Attorney General and usury violations subject to existing penalty provisions under Title 12, Subtitle 1 of the Commercial Law Article; effective October 1, 2025