The "Litigation Investment Safeguards and Transparency Act" aims to enhance consumer protection in litigation financing by establishing a new framework under Chapter 69 of the Florida Statutes. The bill introduces definitions for key terms such as "foreign person," "foreign principal," and "litigation financier," and authorizes courts to consider litigation financing agreements when assessing the adequacy of class representatives or lead counsel in class action lawsuits. It prohibits litigation financiers from influencing the course of legal proceedings and forbids them from receiving a larger share of proceeds than the plaintiffs after attorney fees and costs.

Furthermore, the bill mandates transparency for litigation financing agreements involving foreign entities, requiring parties to file a notice with the court and relevant authorities to disclose the funding relationship and identify the foreign entities involved, while exempting certain proprietary information from disclosure. It establishes compliance and enforcement measures, stating that violations may result in sanctions and that agreements executed in violation of the new provisions will be deemed void and unenforceable. The act includes a severability clause and will apply to legal proceedings initiated on or after July 1, 2026, with ongoing proceedings required to comply with the new rules by July 31, 2026.