APCIA Applauds Signing of North Carolina Bill to Ban Commercial Third-Party Litigation Financing

RALEIGH, N.C. - The American Property Casualty Insurance Association (APCIA) today issued the following statement, attributed to its vice president of state government relations Ron Jackson, regarding the signing of House Bill 315 to ban commercial third-party litigation funding in North Carolina.

"APCIA applauds the passage and signing of HB 315 to ban commercial third-party litigation funding (TPLF) in North Carolina. The bill is an important measure that will help protect North Carolinians from predatory commercial third-party funders looking to profit off lawsuits at the expense of businesses and consumers.

"TPLF is a secretive and unregulated practice that allows outside investors - often hedge funds or foreign actors - to bankroll lawsuits and influence case strategy, which raises concerns about transparency, inflated litigation costs, and national security risks. The lack of regulation also means that courts and defendants do not know when a third-party lender is involved or who they are.

"There is continued bipartisan momentum across the country to address this issue and ensure businesses and consumers are protected. While North Carolina is the first to ban commercial TPLF, there are a growing number of states in the U.S. that have passed legislation to limit or regulate TPLF, including funding offered to consumers. We look forward to continuing to work on this issue with policymakers.

"APCIA thanks North Carolina policymakers and the North Carolina Chamber of Commerce for their leadership and work on this important issue. APCIA urges legislators in other states to build on this momentum by advancing commonsense TPLF reforms that protect consumers and help lower costs."