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TLR Weekly News Roundup: August 20, 2025

TLR Weekly News Roundup: August 20, 2025

Tax Cutting Governors Also Embrace Tort Reform In 2025

FORBES

What happened: Conservative, tax-cutting states are enacting comprehensive tort reform measures to reduce the threat of frivolous litigation, while blue states such as Illinois are encouraging litigation against businesses. Read more

Tell me more: Georgia’s tort reform package addressed improper jury anchoring as well as “phantom” damage awards derived from inflated medical bills. Oklahoma followed Georgia with a $500,000 noneconomic damage cap for claims arising from bodily injuries, which increases to a $1,000,000 cap if the plaintiff suffered a permanent mental injury. 

  • Notably, Florida’s 2023 tort reforms are lowering insurance rates and putting money back in the hands of Floridians. Florida’s top five auto writer insurance groups have lowered rates by an average of 6.5%, and a recent report from the Consumer Protection Coalition indicates a 30% drop in the amount of litigation since Florida passed its tort reforms. 
     
  • Meanwhile, Illinois passed SB 328, requiring companies registered to do business in Illinois to consent to the state’s general jurisdiction. The Illinois Policy Institute explained that this law will subject businesses to liability in Illinois “even if the plaintiffs were not from Illinois and even if the harm did not occur in the state.”

TLR Thoughts: Conservative states are championing tort reform as a policy priority, and their citizens are reaping the benefits. TLR will continue to advocate for meaningful legislation that discourages abusive litigation while protecting the rights of injured Texans.

Texas Sets New Records For Total Jobs, Texans Working

President Trump is Promoting Retirement Options and Protecting Small Businesses and Retirement Savers from Frivolous Lawsuits

REALCLEARMARKETS

What happened: President Donald Trump’s new Executive Order on 401(k)s will help ensure that Americans who work for businesses of all sizes have access to a variety of investment options, while at the same time protecting small businesses and retirement savers from frivolous lawsuits. Read more

Tell me more: Small businesses are currently allowed to offer private market investments to their employees as a part of 401(k) plans, but the threat of lawsuit abuse has deterred employers from offering these investment options. 

  • According to the U.S. Chamber of Commerce’s Institute for Legal Reform, litigation costs in 2021 “totaled $347 billion,” with small businesses bearing about 50 percent of that cost, even though they only account for 20 percent of business revenue.

TLR Thoughts: President Trump’s newly announced Executive Order on 401(k)s recognizes the burden that frivolous lawsuits place on small businesses in particular—ultimately impacting hardworking Americans. Limiting unnecessary litigation strengthens America’s economy and helps more Americans build wealth, showing that legal reform can have immediate, measurable impacts on both business growth and retirement security.

Can AI Help Combat Nuclear Verdicts?

INSURANCE BUSINESS

What happened: AI is being explored as a tool to identify and manage high-risk cases that could result in “nuclear” verdicts. Read more

Remind me: In 2024, U.S. courts delivered 49 verdicts exceeding $100 million, nearly double the number from 2023. The median large verdict increased from $44 million in 2023 to $51 million in 2024.

Tell me more: Experts believe AI may be the next best tool to combat the nationwide proliferation of “nuclear” verdicts. Specifically, AI can model trial outcomes, anticipate jury behavior and identify recurring relationships between certain plaintiffs’ lawyers and medical providers. With this information, AI can flag cases most likely to result in enormous judgments and allow defense counsel to formulate a proper litigation strategy. 

TLR Thoughts: AI and predictive analytics offer promising tools to proactively identify and intervene in high-risk claims that could result in outsized judgments. With these developing technologies, in tandem with reasonable tort reform, frivolous lawsuits and runaway awards can be significantly curbed.