North Carolina became the first state to ban third-party litigation funding.
HB 315, signed by Gov. Josh Stein in 2026, kicks hedge funds, private equity, and foreign backers out of the courtroom. It passed unanimously in the House and near-unanimously in the Senate — the new template every other state's TPLF debate now starts from.
The Latest from PACT
Press coverage, PACT original videos, and reform updates that put the issue in focus.
No one deserves to be victimized by personal-injury attorneys who exploit loopholes in an unregulated system that drives up costs for everyone. We’re committed to a legal system that protects rather than exploits, because consumers deserve a justice system they can trust.
Two PACT projects, built for the people the system exploits.
Standalone platforms — practical guidance for the moment after a crash, and a place for victims to put their own story on the record.
Before You Call That Lawyer
Practical guidance for victims on navigating the immediate aftermath of an accident without falling prey to settlement mills.
Your Injury Story
First-hand accounts from consumers whose lives were complicated by aggressive legal marketing and predatory contracts.
North Carolina became the first state in the country to prohibit third-party litigation funding — kicking hedge funds, private equity, and foreign backers out of the courtroom.
The cost of an unregulated system.
Annual per-household cost
of America's broken U.S. legal system, paid by every family.
Source: Institute for Legal Reform (ILR), 11/24
Total cost to the U.S. economy
of America's broken legal system in 2022 — 2.1% of total GDP.
Source: Institute for Legal Reform (ILR), 11/24
Billboard-lawyer ad spend
spent in 2023 on 26 million+ TV, radio, print, and billboard ads across the U.S.
Source: American Tort Reform Association (ATRA), 3/24
Where lawsuit abuse is winning, and where consumers are fighting back.
These are the states where the fight is most active — proven reform wins, and documented fraud rings driving up costs for everyone else. Click a state for the story.
States delivering measurable savings after enacting meaningful tort, venue, or legal-advertising reforms.
States with documented legal-fraud rings, organized staged-crash conspiracies, or entrenched lawsuit abuse.
States where reform activity has not yet reached national attention, though efforts are advancing in many.
The costs do not stop with the lawsuit.
PACT tracks the fallout where consumers actually feel it: higher premiums, aggressive ad saturation, pressure on family budgets, and the everyday expenses that absorb the cost of lawsuit abuse.
Latest North Carolina coverage
- July 9, 2026The Transparency Wave: States Are Finally Reining In Third-Party Litigation FundingFor years, third-party litigation funding has operated in the shadows of America’s civil justice system. It is a $15.2 billion industry with no meaningful oversight, no disclosure requirements, and no accountability to the consumers it too…Read
- June 23, 2026PACT Statement on North Carolina Third-Party Litigation Funding Ban: A Watershed MomentGovernor Josh Stein signs first in the nation ban on third-party litigation financeRead
- June 23, 2026North Carolina Just Changed the National Debate Over Third-Party Litigation FundingFor years, policymakers across the country have debated the growing role of third-party litigation funding (TPLF) in the American legal system. While many reform efforts have focused on disclosure requirements and transparency measures…Read
Latest dispatches
Insurance Fraud Is Costing You $300 a Year, and New York Is Fighting Back
Staged car crashes aren’t accidents. They’re premeditated schemes designed to defraud insurers and pass the costs on to everyday consumers. We’ve seen these repeatedly in New York from a Suffolk County court ruling exposing coordinated…
PACT Launches “In Their Own Words,” New Video Series Giving Victims of Lawsuit Abuse a Voice
First installment features a victim whose family’s settlement was stolen by the attorney they trusted most
Florida Proves Lawsuit Reform Works. The Rest of America Is Still Waiting.
A new analysis from insurance marketplace The Zebra confirms the quiet part out loud: lawsuit abuse is a primary driver of America’s car insurance crisis, and the states that have acted to reform their legal systems are already seeing…
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