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 related to litigation financing, such as "foreign person," "foreign principal," and "sovereign wealth fund." It authorizes courts to consider litigation financing agreements in specific contexts, like class actions, and prohibits litigation financiers from influencing the course of legal proceedings. Additionally, parties involved in litigation financing agreements with foreign entities are required to file a notice with the court detailing the funding relationship and ownership interests.

The legislation outlines prohibited conduct for litigation financiers, including restrictions on decision-making and sharing proprietary information with foreign entities. It mandates disclosure of any amounts that are 5 percent or more of the funds provided under the agreement, with non-compliance leading to sanctions. Agreements executed in violation of these provisions will be deemed void and unenforceable. Violations of the disclosure requirements will be treated as deceptive and unfair trade practices, allowing for legal action under chapter 501. The new requirements will apply to civil actions initiated on or after July 1, 2026, with ongoing proceedings needing compliance by July 31, 2026. The act is set to take effect on July 1, 2026.