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NY S08808
Bill
Status
1/8/2026
Primary Sponsor
Jeremy Cooney
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AI Summary
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Establishes a comprehensive regulatory framework for litigation funding in New York, moving oversight from the general business law to the financial services law under Department of Financial Services supervision
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Caps maximum consumer charges at 25% of gross legal claim proceeds plus the funded amount, with a $500,000 limit on funding amounts per consumer
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Requires litigation funding companies to register with DFS (with a $500 application fee) and submit annual reports beginning in 2027 detailing contract data, amounts paid, and collection information
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Mandates detailed contract disclosures including funded amounts, itemized charges, payment schedules, and a 10-business-day right of rescission allowing consumers to cancel without penalty
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Prohibits funding companies from paying referral fees to attorneys or medical providers, interfering with legal claim decisions, or entering contracts for frivolous claims
Legislative Description
Amends the litigation funding act to promote consumer protections related to litigation funding contracts; provides for contract requirements for litigation funding including disclosures, prohibitions; provides for litigation funding company registration and reporting requirements.
Last Action
SUBSTITUTED BY A9442
1/28/2026