Litigation Financing In Tennessee: Five Things In-House Counsel Should Know

For many years now, third-party litigation financing has become an increasingly relevant consideration for parties to litigation nationwide. Many states have implemented varying levels of restrictions and regulations, and North Carolina has recently prohibited it entirely in civil cases.¹ In May of 2026, Tennessee enacted new regulations, amending its Litigation Financing Consumer Protection Act (“Act”). For financing contracts entered into on or after May 19, 2026, the Act now requires disclosure of the contract itself and imposes new rules regarding funder control, fees, registration, and responsibility for certain costs and sanctions.² The following provisions are likely to standardize how litigation financing will be handled in lawsuits across Tennessee, including yours.