This bill proposes to amend the Arizona Revised Statutes by adding a new chapter dedicated to litigation financing, which includes definitions for key terms such as "litigation financier," "litigation financing agreement," and "funded consumer." It establishes regulations governing the conduct of litigation financiers, including prohibitions against influencing the course of legal actions, receiving excessive proceeds, and engaging in referral fee arrangements. Additionally, it mandates disclosure requirements for legal counsel regarding litigation financing agreements and the parties involved, ensuring transparency in class actions and multidistrict litigation.

Furthermore, the bill stipulates that litigation financing agreements entered into in violation of the new regulations will be deemed void, and it outlines the responsibilities of litigation financiers to indemnify funded consumers against adverse costs, except in cases of intentional wrongdoing. The act will apply to all civil actions initiated on or after its effective date, which is set for December 31, 2025. Overall, the bill aims to enhance oversight and accountability in litigation financing practices.