Hunton Retail Law Resource

On June 22, 2026, North Carolina Governor Josh Stein signed House Bill 315, the “Prohibit Litigation Investments Act” (the “Act”), into law, making North Carolina the first state to ban third-party litigation funding. 

Third-party litigation funding, which has become increasingly common in class actions and mass tort matters, generally involves a non-party investor providing capital to a plaintiff or law firm in exchange for a share of any recovery. Proponents argue that these arrangements can expand access to justice by helping claimants pursue meritorious claims, while critics have raised concerns about transparency, ethics, and the influence of non-parties over litigation strategy and outcomes.