North Carolina has become the first state to outright ban third-party litigation (TPLF) investment, with HB 315 passing the legislature nearly unanimously. While more durable reforms would have insisted on disclosure and equal tax treatment of TPLF earnings, North Carolina’s ban sends a message to the trial bar — the civil justice system shouldn’t be treated as an investment vehicle free of accountability. More reforms are needed to ensure a fair and effective civil justice system. TPLF enables outside investors to bankroll lawsuits in exchange for a portion of the payout. This often dubious model detaches litigation from the merits of a case. Instead of pursuing justice, funders prioritize maximizing their return on investment — often pressuring lawyers to manufacture flawed, unreliable science to prop up speculative claims rather than relying on evidence-based data. Coupled with a lack of disclosure requirements, preferential tax treatment of TPLF arrangements fans the flames and makes this practice more prolific than it ought to be. In a recent campaign, the Taxpayers Protection Alliance (TPA) explained these problems in detail and called for ending the tax loophole benefiting TPLF earnings. TPA has also called on the International Trade Commission to mandate TPLF disclosures. However, reforming the TPLF system is not enough. TPLF doesn’t just fund cases but perpetuates the paid expert witness ecosystem. Firms for well-funded plaintiffs shop around for expert witnesses who are willing to support manufactured claims with speculative science.