This bill mandates the disclosure of third-party litigation funding agreements in civil actions and establishes 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 for the court to impose sanctions for non-compliance with these disclosure requirements, while explicitly stating that contingent fee agreements between a party and their legal representative do not need to be disclosed.

Furthermore, the bill imposes a fiduciary duty on litigation funders to act in the best interests of the funded party and holds them jointly liable for any costs or monetary sanctions against that party. 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 is set to take effect 90 days after enactment and will apply to agreements entered into thereafter.