MD SB985

Creates the "Maryland Transparency in Third-Party Litigation Financing Act" requiring litigation financiers to provide written contracts with specific disclosures including total funded amounts, itemized charges, repayment schedules in 6-month intervals over 42 months, and consumer cancellation rights within 5 business days

Prohibits litigation financiers from charging interest rates exceeding Maryland's legal limit under Title 12, 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 and insurers within 30 days of execution, with contract existence and participants subject to discovery regardless of whether litigation has formally commenced

Imposes fiduciary duties on litigation financiers toward class members in class action lawsuits and requires legal representatives to disclose any relationships with financiers to class members and the court

Violations render contracts void and unenforceable, with enforcement authority granted to the Attorney General; usury violations subject financiers to penalties under existing Maryland law; effective date October 1, 2025