North Carolina banned litigation investment. It kept Case Equity.

It is not the ban. It is exclusion (g): the Act does not reach "the provision of money or other financial support to a party for personal and household expenses during the pendency of a civil proceeding," so long as that money never touches the fees, costs, and expenses of the case. (§ 66-512(3)(g))

Read what the legislature did there. It banned outside money that buys into the lawsuit, and in the same breath it preserved money that keeps the plaintiff alive while the lawsuit runs. A hedge fund buying a docket is out. Rent during the wait is in. That is not a loophole. That is the line the drafters chose, on purpose, in a bill that passed 157 to 1.

This is the line Case Equity was built on. We do not pay for filings, experts, or fees. We never touch the costs of running the case. Case Equity is money for living while the case runs. Rent. Groceries. Medical bills. North Carolina did not ban that. It wrote it into the statute as the thing worth keeping. ClaimAngel funders remain active in North Carolina today, inside the line the state drew.

The exclusion draws the right line. The next legislature should finish the job and put standards on the lane it kept open: full disclosure before anyone signs, no stake in the outcome, and no influence on the case. That is the standard we already run on every case, in every state, with every one of our 25+ vetted funders: one set public rate, 27.8% simple, capped at 2x, and if you do not win, you owe nothing back.

Mandate the disclosure. Ban the interference. Keep the lifeline the statute already keeps.