Are Pre-Settlement Funding Qualifications Different From State to State?

Yes — state law affects eligibility, maximum advance amounts, required disclosures, and whether funding is available at all. Criterica Capital operates in 39 states and DC, each with its own regulatory framework.

Pre-settlement funding is regulated at the state level, and the rules vary considerably across jurisdictions. Some states have enacted comprehensive litigation funding statutes that specify mandatory disclosures, maximum advance amounts as a percentage of net recovery, cooling-off periods, and prohibitions on funder interference in case strategy. Other states have no litigation-specific statute at all, relying on general consumer protection and contract law.

In states with specific legislation, the funding agreement must include certain disclosures — often in plain language at the front of the document — and must be provided to the plaintiff at least three to five days before signing, depending on the state. Some states require the funding company to register or obtain a license before conducting business in that state.

In states where champerty, maintenance, or barratry doctrines remain active law, third-party litigation funding may be restricted or prohibited entirely. Criterica Capital does not operate in states where our product cannot be structured in compliance with applicable law. See our States We Fund page for current availability across jurisdictions.

The practical eligibility requirements — active attorney representation, a qualifying civil claim, a projected recovery sufficient to support an advance — are consistent across states where funding is available. But the maximum advance amount, the required disclosures, and the cooling-off period (if any) depend on the specific state where your case is filed.

Source: ALFA Consumer Litigation Funding Code of Conduct. State-specific requirements are updated regularly as legislation evolves.

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