TBA Law Blog


Posted by: Julia Wilburn on Jul 8, 2026

North Carolina has become the first U.S. state to ban third-party litigation financing, with Gov. Josh Stein signing House Bill 315 (the Prohibit Litigation Investments Act) into law. Reuters reports that the measure outlaws providing "litigation investment" to parties or counsel in civil cases, lets the attorney general pursue violators and allows injured parties to recover triple damages. It passed with near-unanimous bipartisan support and drew praise from the U.S. Chamber of Commerce, which has pushed unsuccessfully for federal disclosure rules on litigation funding. The law comes as California, Colorado and Illinois consider their own limits on outside investors' influence over legal practice, part of a broader push to regulate the industry.