Across the country, momentum for reform is growing as lawmakers and regulators confront the cost of lawsuit abuse and the rise of third-party litigation funding. From Florida’s successful reforms to Wall Street’s growing stake in lawsuits, and a new federal report warning of mounting “tort tax” pressures, one truth remains clear: unchecked litigation raises costs for every American.
Protecting American Consumers Together
What Happened: The Washington Post editorial board is spotlighting how Florida’s lawsuit abuse reforms have curbed years of inflated premiums and insurer withdrawals from the market. Before reform, nearly 75 percent of the nation’s property insurance lawsuits originated in Florida, forcing many insurers to close shop. After the Florida Legislature and Governor Ron DeSantis acted in 2022 and 2023, more than a dozen new insurers entered the market, and premium increases slowed. Read More
Tell Me More: Florida’s success shows that meaningful lawsuit abuse reforms lower costs for consumers and increase marketplace stability. By addressing abusive litigation, the Sunshine State restored confidence in its insurance market and signaled to the rest of the nation what is possible when lawmakers prioritize fairness in the courtroom.
TLR Thoughts: Taking on trial lawyers is directly benefiting Floridians’ bottom line by lowering insurance costs. While lawsuit abuse drives up costs, hurts families, and weakens competitiveness, accountability and balance restore both affordability and trust.
What Happened: Wall Street investors are now joining forces with trial lawyers to finance lawsuits through third-party litigation funding, a practice that turns courtrooms into profit centers. The Washington Examiner details how financiers bankroll mass-tort campaigns, control settlement decisions, and even use lawsuits to access trade secrets, often at the expense of ordinary plaintiffs and U.S. businesses. Read More
Tell Me More: From hedge-fund-backed advertising blitzes to foreign-funded lawsuits, investors have reshaped tort law into a high-stakes industry worth billions. Cases once deemed too weak to file are now pursued in bulk because investors underwrite the risk. In some instances, foreign entities use this system to exploit discovery rules and obtain sensitive intellectual property.
TLR Thoughts: Litigation funding is not justice; it is monetized activism. Allowing outside investors, in many instances foreign, to profit from American lawsuits erodes trust and fairness in the legal system. Texas has long demanded transparency in its courts, and these revelations reinforce why disclosure and accountability must extend nationwide.
What Happened: The U.S. Department of the Treasury’s Federal Insurance Office has released a 2025 Annual Report on the Insurance Industry, warning that third-party litigation funding is inflating claim costs and destabilizing the property-casualty sector. Regulators note that these pressures ultimately fall on families through higher premiums and reduced coverage availability. Read More
Tell Me More: Industry data now estimates the nationwide “tort tax” — the hidden cost of litigation baked into everyday goods and services — at over $5,000 per household each year.
TLR Thoughts: In Florida, legal filings dropped 30 percent after new regulations targeted at abusive lawsuits took effect, leading to lower premiums and consumer refunds. Texas led the way in the 1990s with some of the most comprehensive lawsuit reforms in the nation – but more work remains to keep Texas affordable, and to ensure courts serve justice, not investors and trial lawyers.
That is how much State Farm is cutting Florida auto insurance rates, its third reduction since 2024, thanks to the state’s 2023 litigation reforms. Progressive has already rebated $1 billion to policyholders, and more companies are following suit. It is proof that meaningful lawsuit abuse reform drives real savings for families and serves as a reminder of why Texas must stay ahead on reform.
Texans for Lawsuit Reform is committed to protecting fairness in our courts, curbing lawsuit abuse and building a civil justice system that empowers families and businesses.
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