North Carolina has led the way in recent years on sensible reforms that strengthen the state’s business climate, from historic tax reform to tort reform. This year, the General Assembly leaders took the next step, making North Carolina the first state to prohibit Third-Party Litigation Investment (TPLI).

Third-Party Litigation Investment is a practice where outside financiers fund lawsuits in exchange for a percentage of any judgment or settlement reached in a civil case.

House Bill 315, Prohibit Litigation Invest/Amend WC Benefits, was signed into law this week after receiving broad bipartisan support in both the House and Senate.

According to the U.S. Chamber of Commerce Institute for Legal Reform, litigation costs each American family approximately $4,200 every year by driving up costs on everyday goods and services.

Conservative leaders in the North Carolina House have prioritized fighting back against the rising cost of living. Along with property tax reforms, the prohibition of Third-Party Litigation Investment continues the forward-thinking reforms that have been a hallmark of conservative leadership in the House.