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updated: 7/1/2014 8:06 AM

Lawsuit loan company to leave state after new law

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Associated Press

NASHVILLE, Tenn. -- A new Tennessee law targeting loans to finance the costs of lawsuits is leading an Illinois company to leave the state.

Oasis Legal Finance, one of the country's largest consumer legal funding services, announced it is leaving the Tennessee market as the law goes into effect Tuesday.

The bill sponsored by Sen. Jack Johnson of Franklin and fellow Republican Curtis Jonson of Clarksville was signed into law by Gov. Bill Haslam in April. The Senate bill passed 27-2, while the House approved its version 52-36 -- just two votes more than minimum needed to clear the chamber.

The loans are issued to consumers while they await a settlement in their cases. Oasis CEO Ralph Shayne said the law represents a victory for the insurance industry over consumers seeking fair settlements.

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