Ohio law will require disclosures and limits on lawsuit funding

Consumer funding companies will have to disclose costs, allow cancellation, and follow fee and repayment limits. These rules cover Ohio residents or people legally based in Ohio with pending civil claims and funding payments below $400,000. Family members, lawyers or accountants serving the consumer, and lenders financing the funding company are excluded as providers. Cancellation requires returning all funds within ten business days after funding. Repayment comes only from available case proceeds, unless the consumer breaks a major contract term or commits fraud. Early repayment fees are forbidden. The 7% cap applies only to the one-time service fee, not all charges. Charges above the disclosed maximum are unenforceable. These rules take effect October 6, 2026.

Funders will be barred from directing case decisions, and consumer funding will carry conflict and privacy rules. The ban on directing case decisions covers consumer and commercial funders. Consumer funders also cannot steer people to specific lawyers or medical providers. Consumer funders cannot exchange referral payments with lawyers or health care providers. Consumer funders may direct people without lawyers to approved lawyer referral services or legal aid. A lawyer's, law firm's, or lawyer's family member's financial interest in the funding company can bar representation involving that company. Sharing private consumer information requires written consent and must remain legally allowed. Court-protected information cannot be shared with commercial funders. These conduct rules take effect October 6, 2026.

Consumers and entities will be barred from signing covered funding agreements with parties legally based outside the United States. The restrictions cover consumer funding companies, commercial lawsuit funders, and consumers or entities entering covered agreements. Consumer and commercial funders cannot knowingly enter covered agreements with someone legally based outside the United States. Funders also cannot knowingly fund claims financed directly or indirectly by someone legally based outside the United States. The restriction turns on where a person or entity is legally based, rather than citizenship. These restrictions take effect October 6, 2026.

Consumer and commercial lawsuit funders will have to register with the Ohio attorney general before doing business in Ohio. Registration covers businesses providing covered consumer or commercial funding tied to case proceeds. Commercial funding excludes ordinary lawyer fee agreements, health care payment claims, loans repayable regardless of case outcomes, existing defense obligations, and covered nonprofit representation without charge. Registration must identify the company, its leaders, and any larger company group. The attorney general may seek a court order barring a funder from this business if a court finds a violation. Registration requirements begin ninety days after the relevant sections take effect on October 6, 2026. The enforcement provision takes effect October 6.

Lawyers will have to report covered funding agreements to the attorney general, who must publish consumer agreements after removing protected information. Reporting covers consumer and commercial funding agreements. The commercial section also directs publication, but its inconsistent name for the agreements leaves that publication duty's exact scope unclear. Reporting after settlement applies only if the claim was filed in court before settlement. Published consumer agreements must exclude legally protected information, including details that could identify the consumer. Terms blocking court evidence requests for an agreement or its parties are unenforceable for agreements entered into, amended, or renewed on or after October 6, 2026. Reports are due within fourteen days after a covered settlement, a final order that can be appealed, or an order showing the case has reached its final stage in the trial court.