Legislation
SECTION 1006
Violations
Financial Services Law (FIS) CHAPTER 18-A, ARTICLE 10
* § 1006. Violations. (a) Any litigation funding company found in
willful violation of any provision of this article in a specific funding
case: (i) waives its right to recover the charges, as defined in
subsection (b) of section one thousand one of this article, in that
particular case; and (ii) shall be liable for a civil penalty of not
more than five thousand dollars for each violation, which shall accrue
to the state of New York and may be recovered in a civil action brought
by the attorney general.
(b) Nothing in this article shall be construed to restrict the
exercise of powers or the performance of the duties of the New York
state attorney general, which such attorney general is authorized to
exercise or perform by law.
* NB Effective June 17, 2026
willful violation of any provision of this article in a specific funding
case: (i) waives its right to recover the charges, as defined in
subsection (b) of section one thousand one of this article, in that
particular case; and (ii) shall be liable for a civil penalty of not
more than five thousand dollars for each violation, which shall accrue
to the state of New York and may be recovered in a civil action brought
by the attorney general.
(b) Nothing in this article shall be construed to restrict the
exercise of powers or the performance of the duties of the New York
state attorney general, which such attorney general is authorized to
exercise or perform by law.
* NB Effective June 17, 2026