On March 24, 2025, the Minnesota State Legislature introduced Senate Bill 2929, a significant piece of legislation aimed at regulating consumer litigation funding. This bill seeks to enhance transparency and protect consumers engaged in legal claims by imposing strict requirements on litigation funding companies.

The primary purpose of Senate Bill 2929 is to ensure that consumers are fully informed about the terms and conditions of litigation funding contracts. Key provisions of the bill include mandatory disclosures that must be included in contracts, such as the total amount due from consumers, the maximum obligation under the contract, and a clear explanation of how charges are incurred. Additionally, the bill requires that contracts contain the consumer's initials on each page and a statement indicating that no fees beyond those disclosed are required.

A notable aspect of the bill is the requirement for a written acknowledgment from the attorney representing the consumer. This acknowledgment must confirm that the attorney has reviewed the mandatory disclosures with the consumer and that they are being compensated on a contingency basis. Furthermore, the attorney is prohibited from receiving any referral fees from the litigation funding company, ensuring that their interests remain aligned with those of the consumer.

The introduction of Senate Bill 2929 has sparked discussions among lawmakers and stakeholders. Proponents argue that the bill is essential for consumer protection, as it addresses potential exploitation in the litigation funding industry, which has seen rapid growth in recent years. Critics, however, express concerns that the additional regulations could limit access to funding for consumers who may already be in vulnerable positions.

The implications of this bill extend beyond consumer protection; it also raises questions about the broader landscape of litigation funding in Minnesota. Experts suggest that if passed, the bill could set a precedent for other states considering similar regulations, potentially reshaping the industry nationwide.

As the legislative process unfolds, Senate Bill 2929 will likely undergo further debates and amendments. The outcome of this bill could significantly impact consumers seeking litigation funding, as well as the companies that provide these services. The next steps will involve committee reviews and discussions, with stakeholders closely monitoring the bill's progress.