Ohio Gov. Mike DeWine has signed House Bill 105, which aims to address transparency concerns around the practice of third-party litigation funding (TPLF). Ohio joins a growing number of states passing TPLF reforms as the insurance industry and business community push for transparency at the state and federal levels due to TPLF’s impact on rising litigation costs.
In June 2026, North Carolina made headlines for becoming the first state to outright prohibit TPLF. Ohio’s measure does not go that far, but does institute a range of restrictions and disclosure requirements.
Ohio’s HB 105 addresses both consumer and commercial legal funding companies and requires that they register with the state’s attorney general prior to commencing business activity in Ohio. Furthermore, litigation funders are required to make certain disclosures, including affiliations and funding agreements. The bill also prohibits litigation funders from making or influencing decisions regarding legal claims, including settlements and resolutions. A key component of the bill also prohibits foreign governments, corporations, and investors from participating in TPLF in Ohio, which bill sponsor Rep. Meredith Craig (R-Smithville) says will prevent foreign-backed entities from influencing U.S. litigation.
Sean Kevelighan, chief executive officer of Triple I, says, "Ohio's enactment of House Bill 105 is an important step toward increasing transparency in third-party litigation funding. Consumers and businesses deserve to know who is financially backing litigation and whether outside investors have a financial interest in the outcome of a lawsuit."
Kevelighan adds, "Transparency benefits everyone. TPLF has grown into a global, multibillion-dollar asset class of dark money largely operating outside public view. Greater transparency helps courts, policymakers and the public better understand the role litigation funding plays in increasing litigation, prolonging cases, and ultimately contributing to higher costs for consumers and businesses."
Joe Roth, assistant vice president of state government relations at the American Property Casualty Insurance Association (APCIA), calls the legislation a "step forward for Ohioans who need access to a functional justice system and are seeking relief from rising prices." He notes that the ban on foreign funding is a "no brainer" and praises Ohio for being the first state to ban it across the board. He adds, "Requiring funder registration with the state attorney general (AG), and giving the AG enforcement power, provides the law with real teeth."
However, while Roth support's the legislation's inclusion of disclosure requirements for funding sources, he questions the timing of those requirements. "Disclosure of funding sources at the conclusion of a trial is a good step forward, but we believe disclosure on the front end would most effectively prevent undue influence on court proceedings by lawsuit funders," Roth says.
Kevelighan agrees, stating, "While Triple-I supports the transparency framework established in HB 105, we believe earlier disclosure would further strengthen the law by providing funding information while a case is pending—not after it has concluded—better equipping courts to evaluate any potential conflicts of interest."
The U.S. Chamber of Commerce Institute for Legal Reform (ILR) praised the signing of HB 105, stating that it directly addresses the “abusive litigation practices” that have driven up litigation costs. “To safeguard consumers, the law requires clear disclosures regarding funding terms, fees, and repayment limits, while expressly prohibiting deceptive practices as well as commissions and referrals to and from funders, attorneys, and health care providers,” ILR says in a statement.
Speaking to efforts around the country to bring transparency to and rules around TPLF, Kevelighan says, “Across the country, state lawmakers are taking meaningful steps to address legal system abuse and the factors driving higher costs for consumers, businesses, and insurance markets. This year’s legislative activity reflects growing recognition issues such as TPLF, predatory legal marketing practices, and excessive litigation can create significant economic impacts.”
Roth concludes, "Nationally, Ohio adds to the momentum that is building to bring transparency and guardrails to litigation funding. In just a few years, 23 states—almost half the country—have passed legislation to regulate this practice, and other states are working on their own approach to this issue."