The Attorney General of Mississippi, Lynn Fitch, made a public announcement to set aside their disagreement with a litigation funding company and agreed to a settlement.
Oasis Financial is a recognized litigation funding firm that enters into financial arrangements with clients (mainly plaintiffs) by providing financing during the pendency of the case to cover their medical bills and financial liabilities. In return, the parties to the case agree to repay a specific percentage of the settlement amount.
Previously, there was a disagreement between Mississippi and the funding company, and the state believed that settlement funding contradicted the Mississippi statutes covering worker’s compensation claims.
In the public statement, the attorney general acknowledges the important role lawsuit funding companies play in ensuring access to justice. The statement quoted, “We do not dispute that the type of services Oasis and similar companies offer can be a big help to a family awaiting a legal settlement while medical or other bills pile up.” As part of the settlement, 1 million USD will be put into a settlement fund, of which approximately 2,225 Oasis’ Mississippi workers’ compensation clients will receive payments. In order to distribute payments, the eligible individuals will be contacted and receive a Notice of Settlement and Claim Election Form via USPS at their addresses notified to the Oasis records.
The individuals receiving the notice of payment will have six months to respond and opt into the settlement fund. Additionally, the funding company will forego collection of any amounts currently owned by 529 Mississippi clients with a claim for the benefits under the Mississippi Worker’s Compensation Act. The relevant worker’s comp individuals will be informed by sending a notice of the forgiveness of their obligation in the mail.
As part of the settlement with the Attorney General, the company has agreed to refrain from providing legal funding to individuals having claims under the Mississippi Worker’s Compensation Act in the future.