State briefing · NC

North Carolina: Lawsuit-Abuse Reform
and Consumer Cost

First state in the nation to ban third-party litigation funding — HB 315, signed by Gov. Josh Stein in 2026.

Reform progress3 PACT reports attributed to North Carolina
Reform progressNorth Carolina

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.

HB 315
First-in-the-nation TPLF ban, signed by Gov. Josh Stein in 2026
Unanimous
House vote in favor — near-unanimous in the Senate
Bipartisan
Rare cross-aisle consensus that outside investors don't belong in civil suits
The model
Every other state's TPLF debate now starts from North Carolina's answer: ban it

Other reform-progress states