North Carolina is the first state to bar third-party litigation investment, under a bill Gov. Josh Stein (D) signed into law Monday. The Prohibit Litigation Investments Act (HB 315) bans loans, advancements and direct payments related to a pending or potential proceeding. It excludes contingency fees, an insurer’s contractual obligation to defend a party, nonprofit funding of suits, and immediate family members providing financial support for court fees.