Legislation

Governor Kathy Hochul signed A.9442/S.8808 on February 13, 2026, establishing the Litigation Funding Act under Article 10 of the Financial Services Law. The law took effect June 17, 2026. It creates consumer protections, restricts funder conduct, and establishes registration and reporting requirements, but importantly, it lacked discovery and disclosure language that would help reign in unscrupulous lenders. Without a comprehensive bill that includes transparency in the litigation process, these lenders will continue to be allowed to charge interest at prohibitively high rates without having to disclose their financial investments in the litigation process, which might pose a conflict of interest.