NM HB223

Requires parties to civil actions with litigation financing agreements to disclose copies of those agreements to opposing parties, the court, insurers, and in class actions/multidistrict litigation, to class members and leadership counsel within 30 days of filing

Prohibits litigation financiers from directing litigation strategy, choosing counsel or expert witnesses, paying referral fees to attorneys or healthcare providers, or assigning/securitizing financing agreements

Mandates disclosure to the U.S. State Department and Justice Department when foreign persons, foreign governments, or sovereign wealth funds have financial interests in litigation outcomes or provide funding

Requires litigation financiers to indemnify funded consumers against adverse costs, attorney fees, and sanctions ordered in the financed action, except for intentional wrongdoing

Agreements violating the act are void, and violations constitute unlawful acts under New Mexico's Unfair Practices Act; effective date is December 31, 2026