N.Y.
General Business Law Section 899-EEE
Prohibitions and charge limitations
1.
Consumer litigation funding companies shall be prohibited from:(a)
paying or offering to pay commissions, referral fees, or other forms of consideration to any attorney, law firm, medical provider, chiropractor or physical therapist or any of their employees for referring a consumer to the company;(b)
accepting any commissions, referral fees, rebates or other forms of consideration from an attorney, law firm, medical provider, chiropractor or physical therapist or any of their employees;(c)
intentionally advertising materially false or misleading information regarding its products or services;(d)
referring, in furtherance of an initial legal funding, a customer or potential customer to a specific attorney, law firm, medical provider, chiropractor or physical therapist or any of their employees; provided, however, if a customer needs legal representation, the company may refer the customer to a local or state bar association referral service;(e)
knowingly providing funding to a consumer who has previously assigned and/or sold a portion of the consumer’s right to proceeds from their legal claim without first making payment to and/or purchasing a prior unsatisfied consumer litigation funding company’s entire funded amount and contracted charges, unless a lesser amount is otherwise agreed to in writing by the consumer litigation funding companies, except that multiple companies may agree to contemporaneously provide funding to a consumer provided that the consumer and the consumer’s attorney consent to the arrangement in writing;(f)
receiving any right to, or making, any decisions with respect to the conduct of the underlying legal claim or any settlement or resolution thereof. The right to make such decisions shall remain solely with the consumer and the attorney in the legal claim;(g)
attempting to obtain a waiver of any remedy or right by the consumer, including but not limited to the right to trial by jury; and(h)
knowingly paying or offering to pay for court costs, filing fees or attorney’s fees either during or after the resolution of the legal claim, using funds from the consumer litigation funding transaction.2.
An attorney or law firm retained by the consumer in the legal claim shall not have a financial interest in the consumer litigation funding company offering consumer litigation funding to that consumer.3.
Any attorney who has referred the consumer to their retained attorney shall not have a financial interest in the consumer litigation funding company offering consumer litigation funding to that consumer.4.
The attorney may only disclose privileged information to the consumer litigation funding company with the written consent of the consumer.5.
Provided the consumer’s attorney or the consumer provides the consumer litigation funding company with an attestation disclosing the final amount of the gross proceeds from the claim, the maximum allowable charges shall not exceed twenty-five percent of the gross proceeds from the applicable legal claim, regardless of the funded amount provided for the relevant claim. * NB Effective June 17, 2026
Source:
Section 899-EEE — Prohibitions and charge limitations, https://www.nysenate.gov/legislation/laws/GBS/899-EEE (updated Dec. 26, 2025; accessed Jan. 10, 2026).
