Louisiana Dept. of Insurance Enters Partnership to Fight Litigation Funding

The Louisiana Department of Insurance is entering a partnership with the National Insurance Crime Bureau (NICB) and digital intelligence company 4WARN to combat third-party litigation funding (TPLF) marketing tactics.

The department said the partnership is the first of its kind to protect consumers from TPLF entities that use digital tactics to drive insurance claims into unnecessary litigation. Third-parties can mislead consumers into believing they are communicating with their insurance companies, the LDI said, only to steer policyholders into long and costly legal disputes before they reach out to their insurance company.

The U.S. Chamber of Commerce Institute for Legal Reform defines TPLF as a way for hedge funds and other financiers to invest in lawsuits in exchange for a percentage of any settlement or judgment. TPLF entities spent an estimated $380 million on paid online search ads from June 2024 to June 2025, according to a report by NICB and 4WARN.

“The LDI is dedicated to protecting Louisianans from opportunists who manipulate the claims process to fuel excessive litigation, which is a primary driver of our high insurance costs,” said Insurance Commissioner Tim Temple. “I’m excited to partner with NICB and 4WARN to expose these misleading practices that prey on policyholders when they are most vulnerable.”

The LDI recommends these tips to protect online searches:

• Obtain information from trusted sources. In particular, the LDI’s website and new mobile app, available via Apple App Store and Google Play Store, are good sources for trusted information.
• Use trusted Web browsers like Google Chrome, Apple Safari or Microsoft Edge. These sites offer built-in security features that help protect against malicious sites.
• Always verify each link in search results before clicking on them. If in doubt, do not click on the link.
• Use reputable security software and anti-virus detection software to safeguard your device from potential threats.
• Keep your apps and devices updated to help detect vulnerabilities that cybercriminals might exploit to attack computers, phones or mobile devices.

Topics
Lawsuits
Mergers & Acquisitions
Louisiana