Oct. 14, 2025
Newsom signs bills tightening rules on legal funding, lawyer ads
AB 931 imposes strict rules on consumer legal funding, while SB 37 targets deceptive attorney advertising and expands enforcement options. Supporters say the measures protect consumers; critics warn they leave key loopholes unaddressed.
Gov. Gavin Newsom has signed two bills imposing major new constraints on the business of law in California, including AB 931, a sweeping measure regulating consumer legal funding.
The practice of advancing cash or credit to potential plaintiffs to move their cases forward has grown increasingly controversial in recent years, especially as hedge funds and other big-money groups have entered the market.
"This bill is a commonsense consumer protection measure that adopt...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In