Landmark law establishes New York's first comprehensive consumer protections for legal funding

ALBANY, N.Y., Dec. 20, 2025 /PRNewswire/ -- The American Legal Finance Association (ALFA) today commended Governor Kathy Hochul for signing the Consumer Litigation Funding Act (S.1104A/A.804C) into law, a historic measure that establishes clear, statewide standards for transparency, fairness, and accountability in New York's legal funding industry while preserving access to justice for individuals pursuing legal claims.

The law represents the first major effort to comprehensively regulate litigation funding in New York, a state that has long lacked uniform, enforceable standards governing the industry. By setting clear guardrails and consumer protections, the legislation brings ethical and transparent practices to a critical part of the civil justice system and ensures New Yorkers can access responsible financial support without fear of unfair or deceptive practices during vulnerable moments.

"I would like to thank Governor Hochul for signing the Consumer Litigation Funding Act and for her leadership in strengthening protections for New Yorkers seeking justice," said Jack Kelly, Managing Director of the American Legal Finance Association. "This law establishes clear, statewide standards that promote transparency, fairness, and accountability in legal funding while preserving access to responsible financial support for individuals navigating the legal system."

"ALFA and its members are deeply committed to fair, transparent, and responsible legal funding practices," Kelly continued. "We look forward to working with state leaders on implementation of the law to uphold the high standards it establishes and to expand access to justice for New Yorkers."

For many victims, litigation funding serves as a financial lifeline, helping cover everyday expenses while a legal case moves forward. The new law ensures that access to this support is paired with strong consumer safeguards and oversight.

ALFA also recognized the lawmakers whose leadership made the legislation possible, including Senator Jeremy Cooney and Assemblymembers Eric Dilan, Joseph D. Morelle Magnarelli, and Latrice Walker, who worked for years alongside stakeholders to advance the bill. Their sustained efforts, along with the support of advocacy organizations and consumer groups, were critical to securing passage of the legislation.

About American Legal Finance Association (ALFA): ALFA represents the leading consumer legal funding companies across the country. The organization supports sensible regulation in the industry that protects consumers through increased transparency while ensuring access to consumer legal funding. Learn more at https://www.americanlegalfin.com/.

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SOURCE The American Legal Finance Association