Ohio Cracks Down on Third-Party Litigation Finance by Banning Investment From International Funders

September 29, 2026 - 00:46

Ohio has enacted a new law that bars international investment funds from financing lawsuits in state courts, a move that reshapes how third-party litigation funding operates within its borders. The legislation, which takes effect Oct. 6, targets a practice where outside investors cover the costs of lawsuits in exchange for a share of any settlement or judgment.

Both backers and critics of the measure agree on one likely outcome: large funders such as Burford Capital and Omni Bridgeway will be shut out of financing cases filed in Ohio state courts. These firms, which operate globally, have become major players in the litigation finance industry, often providing millions of dollars to plaintiffs in exchange for a cut of the proceeds.

Supporters argue the law protects Ohio's legal system from foreign influence and reduces incentives for drawn-out litigation. Opponents counter that it limits access to justice for plaintiffs who cannot afford lengthy court battles. The law represents one of the most aggressive state-level restrictions on litigation funding to date, and its impact will be watched closely by other states considering similar measures.