Governor Newsom Approves AB 931 For Transparent Legal Funding Practices
LOS ANGELES, CA, November 07, 2025 /24-7PressRelease/ — Lawmakers in California are seeking stricter oversight on legal funding and advertising. On October 13, 2025, Governor Gavin Newsom signed Assembly Bill 931 into law. This statute reshapes how California-licensed attorneys can engage with litigation funding. Under AB 931, all contracts pertaining to legal funding must be written in plain language that is easily understood without the guidance of a professional. All fees associated with legal funding must be explicitly outlined in the contract, including the maximum award consumers can expect to receive. Furthermore, lawyers are prohibited from receiving referral fees from legal funders. This law is designed to protect consumers, maintain attorney-client privilege, and make sure that companies providing litigation funding interact with consumers in an honest and ethical manner.
Lawmakers also successfully passed Senate Bill 37. Under this new law, California-licensed attorneys have stricter parameters around what they can and cannot include in promotional materials. Lawyers are prohibited from referencing past judgments in a way that influences a consumer to engage their services. Additionally, awards where the recipient pays to receive them cannot be used in advertising. The enforcement of SB 37 protects consumers from manipulative or unethical marketing strategies.
About the firm:
Seber Bulger Law provides legal representation for personal injury, employment litigation, and LGBTQ+ rights. Led by attorneys Jonathan Seber and Jim Bulger, the firm has recovered millions of dollars in settlements on behalf of its clients. Their team has over 20 years of experience helping victims in Beverly Hills, Los Angeles, and the surrounding areas.
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