H1861

Providing transparency in third party litigation financing

Introduced·2/27/25
Introduced Text

Massachusetts H1861 establishes transparency and regulation for third-party litigation financing.

Massachusetts H1861 introduces regulations for third-party litigation financing, ensuring transparency and consumer protection. The bill mandates that consumer litigation funding companies must register with the Division of Banks and adhere to specific rules. It prohibits companies from paying commissions, referral fees, or other forms of consideration to attorneys, law firms, or healthcare providers. The bill also requires clear disclosures in consumer litigation funding contracts, including the funded amount, charges, and a right of rescission.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

See what it does, who it affects, and the critical issues in plain language. Free, 30 seconds.

Where it stands

Current
In committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

Calendar

Jul 29, 2025

1:00 PM

Joint Committee on The Judiciary Hearing

Jul 29, 2025

1:00 PM

Joint Committee on The Judiciary Hearing

History

Mar 26

House

Accompanied a study order, see H5281 (under House Rule 27)

Oct 20, 2025

Joint

Hearing scheduled for 07/29/2025 from 01:00 PM-05:10 PM in A-2

Oct 20, 2025

House

Reported by committee to Clerk’s Office for processing, will accompany a study order