§ 12-3453 — Prohibited conduct; applicability

A. A litigation financier may not pay or offer to pay a commission, referral fee or other consideration to legal counsel, a law firm or a licensed health care provider, for referring a person to the litigation financier without disclosing in writing to the potential borrower. The disclosure must be made before entering into the litigation financing agreement and must be separately acknowledged and agreed to by the potential borrower, including the amount of the commission, referral fee or other consideration to be paid for the referral on behalf of the borrower.

B. A litigation financier may not provide funding to or in connection with a litigation financing agreement that is directly or indirectly financed by a foreign entity of concern.

C. This section applies to class actions and multidistrict litigation. The acknowledgment required by subsection A of this section shall be made by the class representative or the named plaintiffs.