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North Carolina Enacts First-in-the-Nation Ban on Third-Party Litigation Financing

calendar_today June 26, 2026 person Alan S. Kaplinsky and John L. Culhane, Jr. domain ballard-spahr

North Carolina has become the first state in the nation to enact a comprehensive prohibition on third-party litigation financing in civil cases. Governor Josh Stein signed House Bill 315, now Session Law 2026-14, titled the “Prohibit Litigation Investments Act” on June 22, 2026, at which point it took effect. It applies to civil proceedings commenced on or after June 22, 2026 or litigation funding contracts entered into, renewed or amended on or after June 22, 2026….

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