The "Litigation Investment Safeguards and Transparency Act" seeks to regulate litigation financing in Florida by introducing a new part II to chapter 69 of the Florida Statutes. The bill establishes definitions and provisions for litigation financing agreements, requiring courts to assess potential conflicts of interest and prohibiting financiers from influencing legal proceedings. It mandates disclosures regarding these agreements, especially when foreign entities are involved, and outlines conditions under which such agreements may be rendered void and unenforceable. Additionally, attorneys are obligated to inform clients and relevant parties about the existence of these agreements within specified timeframes, with penalties for non-compliance.

The legislation emphasizes transparency by requiring parties in civil actions to disclose the identities of any foreign entities with a financial interest in the case, including their name, address, and citizenship. These disclosures are ongoing and must be updated as new information arises. The bill also mandates that litigation financiers indemnify plaintiffs against adverse costs, except in cases of intentional misconduct, and classifies violations as deceptive trade practices, making the agreements void and unenforceable. The act is set to take effect on July 1, 2025, with a severability clause to maintain the enforceability of remaining provisions if any part is invalidated. Parties involved in ongoing legal proceedings will have a 30-day period to comply with the new requirements.