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Lawsuit financing bill passes House

– A bill targeting companies that provide cash advances to Indiana residents awaiting payoffs in personal injury cases is advancing in the Legislature amid strong opposition by the companies that the measure seeks to regulate.

The bill passed the Indiana House last week on a 57-39 vote and is now before the Senate. Its key provision would cap the rate of return that companies could claim at 38 percent.

Republican state Rep. Matt Lehman of Berne says he sponsored the bill targeting so-called litigation financing after hearing cases where companies obtained returns of up to 200 percent from people with pending personal injury cases who received money for living expenses.The American Legal Finance Association opposes the bill. Executive director Kelly Gilroy says the current measure “would eliminate” litigation financing in Indiana.

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