---
title: O.C.G.A. § 7-10-4. Prohibited activities.
collection: code
id: 7-10-4
cite_as: O.C.G.A. § 7-10-4 (2025)
canonical_url: https://georgiacommons.org/code/7-10-4
md_url: https://georgiacommons.org/code/7-10-4.md
text_url: https://georgiacommons.org/code/7-10-4/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t7-t8-(v5)-pdf.pdf?sfvrsn=12761d5c_0#page=113
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/7-10.md
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index: https://georgiacommons.org/code/index.md
version: Effective January 1, 2026.
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: BANKING AND FINANCE / LITIGATION FINANCING
extraction_warnings:
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---

# O.C.G.A. § 7-10-4. Prohibited activities.

(a) A litigation financier shall not:

(1) Direct, or make any decisions with respect to, the course of any civil action, administrative proceeding, legal claim, or other legal proceeding for which such litigation financier has provided litigation financing, or any settlement or other disposition thereof. Such prohibition includes, but is not limited to, decisions in appointing or changing legal representatives, choice or use of expert witnesses, and litigation strategy. All rights to make decisions with respect to the course and settlement or other disposition of the subject civil action, administrative proceeding, legal claim, or other legal proceeding shall remain solely with the parties to such action, claim, or proceedings and their legal representatives. The provisions of this paragraph shall be strictly construed in favor of the individual or entity receiving litigation financing and against the litigation financier;

(2) Pay or offer commissions, referral fees, rebates, or other forms of consideration to any person, including, but not limited to, an attorney or any employee of an attorney or a law firm, in exchange for referring a consumer or such consumer’s legal representative to a litigation financier; provided, however, that this paragraph shall not apply to an employee, agent, or affiliate of the litigation financier;

(3) Accept any commissions, referral fees, rebates, or other forms of consideration from any person, including, but not limited to, an attorney or any employee of an attorney or a law firm, for providing any goods or rendering any services to the consumer; provided, however, that this paragraph shall not apply to an employee, agent, or affiliate of the litigation financier;

(4) Contract for, receive, or recover, whether directly or indirectly, any amount greater than an amount equal to the share of the proceeds collectively recovered by the plaintiffs or claimants in a civil action, administrative proceeding, legal claim, or other legal proceeding seeking to recover monetary damages financed by a litigation financing agreement after the payment of any attorney’s fees and costs owed in connection to such action, claim, or proceedings;

(5) Advertise false or misleading information regarding its products or services;

(6) Refer or require any consumer to hire or engage any person providing any goods or rendering any services to the consumer;

(7) Fail to promptly deliver a fully completed and signed litigation financing contract to the consumer and the consumer’s legal representative;

(8) Attempt to secure a remedy or obtain a waiver of any remedy, including, but not limited to, compensatory, statutory, or punitive damages, that the consumer may or may not be entitled to pursue or recover otherwise;

(9) Offer or provide legal advice to the consumer;

(10) Assign or securitize a litigation financing agreement in whole or in part; provided, however, that, if the litigation financier retains responsibility for collecting payment, administering, and otherwise enforcing the litigation funding contract, the prohibition provided in this paragraph shall not apply to an assignment:

(A) To a wholly owned subsidiary of the litigation financier;

(B) To an affiliate of the litigation financier that is under common control; or

(C) Granting a security interest under Article 9 of the Uniform Commercial Code or as otherwise permitted by law; or

(11) Report a consumer to a credit reporting agency if insufficient funds remain to repay the litigation financier in full from the proceeds received from any judgment, award, settlement, verdict, or other form of monetary relief obtained in a civil action, administrative proceeding, legal claim, or other legal proceeding that is the subject of the litigation financing agreement.

(b) No person that provides any goods or renders any services related to the litigation to the consumer shall have a financial interest in litigation financing provided by a litigation financier to such consumer, and no such person shall receive any commissions, referral fees, rebates, or other forms of consideration from any litigation financier or the litigation financier’s agents, employees, owners, or affiliates.

## History

Code 1981, § 7-10-4, enacted by Ga. L. 2025, p. 31, § 2/SB 69, effective January 1, 2026.