N.Y. Financial Services Law Section 1006
Violations

(a)

Any litigation funding company found in willful violation of any provision of this article in a specific funding case:

(i)

waives its right to recover the charges, as defined in subsection (b) of § 1001 (Definitions)section one thousand one of this article, in that particular case; and

(ii)

shall be liable for a civil penalty of not more than five thousand dollars for each violation, which shall accrue to the state of New York and may be recovered in a civil action brought by the attorney general.

(b)

Nothing in this article shall be construed to restrict the exercise of powers or the performance of the duties of the New York state attorney general, which such attorney general is authorized to exercise or perform by law. * NB Effective June 17, 2026

Source: Section 1006 — Violations, https://www.­nysenate.­gov/legislation/laws/FIS/1006 (updated Feb. 20, 2026; accessed Feb. 28, 2026).

Green check means up to date. Up to date

Verified:
Feb. 28, 2026

Last modified:
Feb. 20, 2026

§ 1006. Violations's source at nysenate​.gov

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