What Does Georgia’s SB 69 Do to Third-Party Litigation Funding?
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Senate Bill 69, the “Georgia Courts Access and Consumer Protection Act”, makes it unlawful to engage in litigation financing in Georgia without registering with the Department of Banking and Finance, bars funders affiliated with designated foreign adversaries, forbids funders from controlling the case, and caps what a funder can take. The registration and conduct rules took effect on January 1, 2026. Its discovery rule, which lets a party obtain the existence and terms of a funding agreement for the pending case, took effect on approval, recorded in the 2025 legislative summary as April 21, 2025.
Two effective dates
| Part of SB 69 | Effective | Applies to |
|---|---|---|
| Section 3: discovery of litigation financing agreements (O.C.G.A. § 9-11-26(b)(2.1)) | On approval (April 21, 2025) | Civil actions and other proceedings commenced, and contracts entered into, on or after that date (§ 5(b)) |
| Section 4: seat belt evidence (§ 40-8-76.1(d)) | On approval (April 21, 2025) | Only causes of action commenced on or after that date (§ 5(c)) |
| Everything else, including the new Chapter 10 of Title 7 | January 1, 2026 (§ 5(a)) | The Act's general effective date; § 5 adds no separate applicability rule |
Discovery of funding agreements
Under new § 9-11-26(b)(2.1)(A), “A party may obtain discovery of the existence and terms and conditions of any litigation financing agreement … the subject of which is or includes the pending action”. The $25,000 figure applies only to nonparties: the subparagraph “shall not apply to nonparties unless the litigation financing agreement is for $25,000.00 or more in funding”. Subparagraph (B) adds that disclosure does not by itself make the information admissible at trial, but does not limit its admissibility “as evidence of a party’s claim or defense”.
What funders must do and may not do
- Register. “It is unlawful for a person to engage in litigation financing in this state unless such person is registered as a litigation financier” (§ 7-10-2(a)). The registration statement discloses, among other things, any affiliated foreign person, foreign principal, or sovereign wealth fund, and, for an entity, each person holding 10 percent or more of its voting shares (§ 7-10-2(c), (d)).
- No foreign adversary ties. No one may register or engage in litigation financing who is affiliated with a foreign government or foreign nongovernment person or entity designated by the U.S. Secretary of Commerce as a foreign adversary under 15 C.F.R. § 7.4, “or any foreign person, foreign principal, or sovereign wealth fund thereof” (§ 7-10-2(e)).
- No control of the case. A funder may not direct or decide the course of the case or its settlement, including “decisions in appointing or changing legal representatives, choice or use of expert witnesses, and litigation strategy” (§ 7-10-4(a)(1)).
- A cap on the funder’s share. A funder may not recover more than the share of the proceeds the plaintiffs collectively recover “after the payment of any attorney’s fees and costs” (§ 7-10-4(a)(4)).
- No referral payments, legal advice, or credit reporting for a shortfall (§ 7-10-4(a)(2), (3), (9), (11)).
Consequences of a violation
| Consequence | Rule |
|---|---|
| Sanctions for frivolous litigation | A funder providing $25,000 or more "may be jointly and severally liable" for costs or monetary sanctions for frivolous litigation; if its repayment right is a fixed amount, its liability is capped at that right less the amount already extended (§ 7-10-5(a)) |
| Indemnity | The funder must indemnify the plaintiffs and their lawyers against adverse costs, fees, damages, or sanctions, except those resulting from their intentional misconduct (§ 7-10-5(b)) |
| The agreement | "Any violation of this chapter by a litigation financier renders the litigation financing agreement void and unenforceable" by the funder or a successor (§ 7-10-8) |
| Criminal penalty | A person who "willfully violates" the chapter is guilty of a felony, punishable by one to five years' imprisonment, a fine of up to $10,000, or both; on the jury's recommendation approved by the judge, or in the judge's discretion, it may be punished as a misdemeanor (§ 7-10-9(b)) |
Who is exempt
Section 7-10-7 excludes nonprofit entities funding litigation for themselves or their members without interest, fees, or a share of the recovery; businesses funding litigation without charging interest or fees or taking an interest in the outcome or recovery; and lenders whose repayment does not come from the proceeds of a case.
If you have, or are considering, funding
- In a case commenced on or after April 21, 2025, the agreement’s existence and terms can be discoverable (§ 9-11-26(b)(2.1); applicability in § 5(b)).
- Check that the funder is registered with the Department of Banking and Finance.
- Read the agreement for any term that would let the funder direct counsel, experts, strategy, or settlement.
The seat belt rule carried in Section 4 is explained in whether not wearing a seatbelt can be used against you, and the companion tort reform in the key provisions of SB 68.
Sources
- Senate Bill 69 (2025), as passed, §§ 2 to 5.
- Georgia General Assembly, 2025 Summary of General Statutes Enacted, entry for Act 10 (SB 69).
General information about Georgia law as of October 2026. It is not legal advice, and reading it does not create an attorney-client relationship.