This bill mandates the disclosure of third-party litigation funding agreements in civil actions and outlines specific responsibilities for litigation funders. It requires that parties or their attorneys disclose any litigation funding agreements to the court and all involved parties without waiting for a discovery request. The disclosure must include all relevant correspondence and documents at the time of filing an initial pleading or when the agreement is made. Additionally, any amendments to these agreements must also be disclosed promptly. The bill allows courts to impose sanctions for non-compliance with these disclosure requirements and clarifies that contingent fee agreements between a party and their legal representative do not need to be disclosed.

Furthermore, the bill establishes a fiduciary duty for litigation funders towards the parties they fund, ensuring that funders act in the best interests of the funded parties. It prohibits funders from engaging in practices that could interfere with the civil action, such as influencing decisions related to the case, providing legal advice, or receiving excessive payments from the litigation proceeds. If a funder violates these provisions, the litigation funding agreement becomes unenforceable, and such violations are classified as unfair or deceptive acts under New Jersey's consumer fraud laws. The bill aims to enhance transparency and protect the rights of parties involved in civil litigation.