DeWine signs House Bill 105 on lawsuit funding

What House Bill 105 changes

Gov. Mike DeWine has signed House Bill 105, a measure sponsored by state Reps. Meredith Craig of Smithville and Jim Thomas of Plain Township. The law takes effect Oct. 6, 2026, the Ohio House announced on Sept. 16.

Third-party litigation funding occurs when an outside investor finances a lawsuit in return for part of a future settlement or court award. The investor is not otherwise directly involved in the dispute.

Under the new law, third-party litigation funders must register with the Ohio Attorney General. Funders cannot direct legal strategy and must disclose the terms of their funding agreements after a case ends. The measure also bars foreign governments, foreign corporations and foreign investors from participating in third-party litigation funding. The Ohio House described that prohibition as the first of its kind in the country.

What the sponsors said

Craig said the law is intended to stop foreign entities from profiting through legal disputes involving Ohio residents and businesses. She also thanked DeWine for signing the measure and said Ohio courts should focus on justice rather than investment opportunities for foreign entities.

Thomas connected the measure to what he described as the need for a stable and predictable civil court system. He said its registration, disclosure and foreign-participation provisions would protect residents, consumers and businesses while increasing transparency and accountability.

The law’s requirements apply to funders that provide outside financing in exchange for a share of a settlement or judgment. Its effective date gives affected funders and the Ohio Attorney General until Oct. 6 to prepare for registration and compliance.