Arizona Trucking Association Applauds Supreme Court Rule Change Bringing Transparency to Lawsuit Financing

The Arizona Trucking Association (ATA) today praised the Arizona Supreme Court’s decision to adopt a rule requiring disclosure of third-party litigation funding (TPLF) agreements in civil cases. This landmark change will shine a light on the outside financiers bankrolling lawsuits, a practice that has fueled lawsuit abuse, driven up insurance premiums, and exposed Arizona’s trucking industry to costly nuclear verdicts.

Third-party litigation funding occurs when hedge funds, private equity firms, or other financiers — sometimes even foreign-backed entities — provide money to plaintiffs in exchange for a portion of any settlement or award. These arrangements often encourage prolonged litigation, inflate settlement demands, and make Arizona’s businesses, including trucking companies, more vulnerable to predatory legal tactics.

The ATA has long partnered with others in the business community to advocate for stronger safeguards against lawsuit abuse. Earlier this year, ATA supported S.B. 1215, signed by Governor Katie Hobbs, which prohibits funding from foreign adversaries, prevents financiers from influencing legal strategy, and requires disclosure of referral fees. Together, the new law and the Supreme Court’s action establish Arizona as a national leader in legal reform.

“Trucking is the backbone of Arizona’s economy, but our industry has been increasingly targeted by lawsuit lenders looking to score a quick payday,” said Tony Bradley, President & CEO of the Arizona Trucking Association. “These outside funders fuel runaway lawsuits, extend litigation timelines, and drive up the cost of insurance for every carrier on the road. By requiring disclosure, Arizona has taken a critical step to protect our industry, ensure fairness in the courts, and keep our state’s economy moving forward.”

With this rule change, beginning January 1, 2026, all parties in civil litigation will know if a lawsuit is being financed by an outside entity. This added transparency will help curb abusive practices and restore balance to Arizona’s justice system.

“The Arizona Trucking Association thanks the Supreme Court and the Legislature for their leadership in addressing this growing problem,” Bradley said. “Arizona has set the standard for the rest of the country — showing that you can stand up for fairness, protect job creators, and safeguard industries like trucking that keep America’s supply chain strong.”

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