North Carolina is the first state to bar third-party litigation investment, under a bill Gov. Josh Stein (D) signed into law Monday.
The Prohibit Litigation Investments Act (HB 315) bans loans, advancements and direct payments related to a pending or potential proceeding. It excludes contingency fees, an insurer’s contractual obligation to defend a party, nonprofit funding of suits, and immediate family members providing financial support for court fees.
“Today, North Carolina took a historic step to protect the integrity of its civil justice system and preserve the legal certainty that supports economic growth and investment across our state,” ...
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