Governor Josh Stein signs first in the nation ban on third-party litigation finance

Washington, D.C. – Protecting American Consumers Together (PACT), a national organization dedicated to standing up for plaintiffs, victims, and consumers and ensuring access to a fair and transparent legal system, today released the following statement regarding Governor Josh Stein signing legislation making North Carolina the first state in the nation to prohibit third-party litigation funding:

“North Carolina’s enactment of the nation’s first ban on third-party litigation funding is a watershed moment in the debate over the growing influence of outside investors in America’s civil justice system,” said PACT Executive Director Lauren Zelt.

“The consequences fall hardest on the very people these arrangements claim to serve. When outside investors control case strategy, victims can be kept in litigation long after a fair settlement is on the table — reduced, in documented cases, to ‘litigation hostages’ while funders wait for a bigger payout. That dynamic plays out quietly, with no disclosure required and no accountability to the claimant.

With overwhelming bipartisan support, North Carolina has demonstrated that these concerns transcend politics. This landmark law is certain to shape the national conversation, and give other legislatures the template they need to act, which will protect consumers and victims from predatory tactics by billboard lawyers and their outside investors,” Zelt continued.

PACT previously documented current third-party litigation developments in states across the country in a blog post HERE. 

To schedule an interview or learn more about PACT, please contact ED Lauren Zelt at [email protected]. 

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