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In the News

In the News

What happened: On March 21, in a critical move, Georgia lawmakers signed off on Senate Bill (SB) 68 in Georgia Gov. Brian Kemp’s (R) comprehensive tort reform package. The bill now heads to Gov. Kemp’s desk to be signed into law.

Tell me more: SB 68 aims to curb lawsuit abuse while protecting families, small businesses and Georgia’s economic competitiveness. 

  • On February 21, the Georgia State Senate passed SB 68 with a bipartisan vote. The amended bill, which passed the Georgia State House of Representatives on a 91-82 vote on March 20, maintains its core provision addressing “phantom damages” – awards based on inflated medical bill amounts that were never paid. 

TLR Thoughts: Much like Georgia, TLR is advocating this session for meaningful reforms that will put a stop to the abusive lawsuits threatening Texas businesses and endangering the Texas economy. The Lone Star Economic Alliance, of which TLR is a founding member, is urging Texas lawmakers to pass SB 30/HB 4806 – vital legislation that will restore transparency and fairness to Texas’s courts. Notably, SB 30/HB 4806 includes reforms that will (1) encourage doctors to treat accident victims; (2) stop the manipulation and inflation of medical damages; and (3) educate jurors on noneconomic damages by providing clear standards and definitions. SB 30 will be heard by the Senate State Affairs Committee next Monday, March 31, 2025.

Read the full press release here.

What happened: The American Tort Reform Association (ATRA) has released a new report exposing the growing misuse of public nuisance litigation, which is now being weaponized and targeted to entire industries over complex societal issues.

Tell me more: The report details how plaintiffs’ lawyers use public nuisance claims to bypass traditional liability principles and hold businesses accountable for “far-reaching societal problems, regardless of fault or causation.”

  • Critically, the report warns that abusive public nuisance lawsuits that target lawful activities like producing oil and gas and plastic packaging could lead to unprincipled liability, higher consumer costs, and harm to American businesses’ competitiveness.

TLR Thoughts: Attorneys representing government entities have resurrected the ancient “public nuisance doctrine” as a mechanism to regulate society through litigation. Courts shouldn’t be engaged in shaping public policy—only in evaluating the specifics of each case and applying the law accordingly. TLR is advocating this session for narrow legislation (SB 779) that will protect the Legislature’s authority to set public policy, while preserving nuisance lawsuits for use when appropriate.

Read the full article here.

What happened: A new study prepared for Citizens Against Lawsuit Abuse (CALA) by Waco-based economic research firm The Perryman Group found that Texans pay an average of $1,725 more for goods and services every year as the cost of lawsuits and massive court awards are passed on to consumers. 

Tell me more: This $1,725 lawsuit tax—which drives up the cost of everything Texans buy, from groceries to housing to insurance—is higher than the national annual average lawsuit tax of $1,666 per person.

  • Between 2009 and 2023, Texas led the nation in the number of “nuclear verdicts” (i.e., jury verdicts of $10 million or more). According to the CALA study, a total of 207 nuclear verdicts were awarded in Texas during that time, totaling more than $45 billion—costs that are often ultimately borne by consumers throughout the state.

By the numbers: The lawsuit tax is even higher in specific regions of the state:

  • $2,746 per Texan in Austin-Round Rock-Georgetown;
  • $2,483 per Texan in Dallas-Fort Worth-Arlington; and
  • $2,373 per Texan in Houston-The Woodlands-Sugar Land.

In his own words: “We must preserve access to courts for legitimate lawsuits, but today’s get-rich-quick lawsuit environment threatens access and drives up costs for everyone.” – Bobby Jenkins, chairman of Citizens Against Lawsuit Abuse of Central Texas

TLR Thoughts: The study comes as the Texas Legislature is considering legislation (SB 30/HB 4806) that would address unreasonable court awards known as “nuclear verdicts,” which are driving up costs for businesses and consumers and impeding economic growth in the state. Notably, the legislation has been named a priority bill by Lt. Governor Dan Patrick. SB 30 will be heard by the Senate State Affairs Committee next Monday, March 31, 2025.

Read the full article here.

What happened: Nasdaq has announced it will open its first regional headquarters in Dallas—the latest push by a New York institution into Texas. 

Remind me: Nasdaq was founded in 1971 and established stature during the tech boom of the late 1990s and early 2000s. Though Silicon Valley is a thriving pipeline for its listing business, the exchange never opened a headquarters in California. Nasdaq has more than 200 listed companies based in Texas, where it has had a physical presence since 2013The regional office will expand the company’s footprint in the Lone Star State.

Tell me more: Making a big investment in Texas is becoming a trend among financial institutions. In February, the New York Stock Exchange (NYSE) revealed its plans to add operations in Dallas by reincorporating its NYSE Chicago as NYSE Texas—a fully electronic equities exchange. Additionally, the Texas Stock Exchange (TXSE) has filed paperwork in the hopes of gaining regulatory approval to start trading and listing companies in 2026.

TLR Thoughts: Texas continues to pose a threat to New York’s financial dominance, attracting top companies and technology giants to the state. The Texas Business Court—a strong alternative to the Delaware Court of Chancery System—is the main draw. This session, TLR is advocating for legislation that will both enhance Texas’s existing corporate governance laws and expand the Texas Business Court’s jurisdiction to include more kinds of commercial disputes, so that Texas remains the premier state for corporate operations.

Read the full article here.

What happened: Businesses are moving out of Delaware as its courts impose unpredictable legal rulings that undermine corporate confidence, with Texas positioning itself as a stable alternative. In Gov. Greg Abbott’s words: “The Lone Star State is open for business.” 

Tell me more: Delaware’s Chancery Court has shifted away from its long-standing business-friendly approach, increasingly interfering with shareholder-approved decisions and corporate governance. 

  • Texas, by contrast, is luring companies to the state with the newly established Texas Business Court—the state’s first new court system in more than half a century.
  • In 2023, TLR worked hard to ensure the enactment of legislation creating a specialized business court in Texas that would handle complex business-to-business litigation—a major economic development tool for the state—as well as the Fifteenth Court of Appeals, which handles appeals for the business court and important cases involving the State of Texas.
  • In February 2025, Gov. Abbott celebrated the New York Stock Exchange’s (NYSE) announcement that it is establishing NYSE Texas in Dallas. Nasdaq, another major stock exchange, also has a presence in Texas, and the TXSE Group is working to set up the Texas Stock Exchange in the state as well.

 

In his own words: “Delaware may go to hell, but businesses should come to Texas. Here, the American dream lives on.” —Gov. Greg Abbott

TLR Thoughts: This session, TLR is working with the Texas Legislature to further enhance the Texas Business Court and to protect companies from unnecessary litigation—so that Texas can cement its status as the best place in the nation to live, work and do business. On March 4, TLR joined the Texas Stock Exchange and the Alliance for Corporate Excellence in applauding the filing of Senate Bill (SB) 29 by Sen. Bryan Hughes (R-Mineola) and companion House Bill (HB) 15 by Rep. Morgan Meyer (R-University Park). The legislation would codify the “business judgment rule,” ensuring the Texas courts cannot second-guess decisions made by disinterested members of corporate boards. 

Read the full article here.

What happened: On March 13, Lt. Governor Dan Patrick announced the second round of his top 40 priority bills for the 89th regular legislative session. Senate Bill (SB) 30 and Senate Bill (SB) 39 were among those listed. 

Worth noting: SB 30 proposes reforms that will help curb “nuclear verdicts”—verdicts of $10 million or more driving up the cost of doing business in Texas—while SB 39 seeks to make commercial motor vehicle collision lawsuits consistent with existing law, fair for plaintiffs and defendants, and uniform across the state.

In their own words: The Lone Star Economic Alliance (LSEA) of which TLR, TXTA and TFFA serve as founding members, is advocating for reforms that will protect Texans from higher insurance costs; guarantee fair restitution for legitimate injuries; and create a legal environment that encourages medical providers to treat accident victims without fear of litigation abuse.” 

—Texans for Lawsuit Reform (TLR), the Texas Trucking Association (TXTA) and the Texas Food and Fuel Association (TFFA) 

TLR Thoughts: LSEA members showed in force at the Texas State Capitol on March 11 to urge Texas legislators to support the meaningful reforms included in SB 30 and SB 39. LSEA is comprised of nearly 150 business associations and 1,000 Texas job creators and individuals who share a common mission: to curtail the skyrocketing cost of doing business by exposing unfair litigation practices and their impact on the jobs and businesses that fuel Texas’s economy. 

Read the full press release here.

What happened: Apple is the latest technology giant to announce its move to the Lone Star State, where it will launch a new 250,000 square-foot factory in Houston to make servers for an artificial-intelligence system.

Remind me: Tech investments are transforming the Texas economy, often via companies from California in search of lower taxes and fewer regulations on land use and labor.

  • Major corporations like Tesla, Meta and Hewlett Packard have already moved operations to Texas, citing lower costs and a growing talent pool.
  • To further attract businesses, Texas launched on Sept. 1, 2024 a specialized business court to streamline complex business cases and to reduce backlogs in state district courts.  

In his own words: “In the end, it’s all about the cost of doing business, and the cost of doing business is just lower in Texas.” John Diamond, an economist at Rice University 

TLR Thoughts: The creation of the Texas business court is one of the most transformative steps the state has ever taken to strengthen Texas’s economic competitiveness. This session, TLR is working with the Texas Legislature to further enhance the business court and the state’s corporate governance laws—so that Texas can further cement its status as the best place in the nation to live and to work.

Read the full article here.

What happened: A newly released nationwide survey by Protecting American Consumers Together (PACT) reveals that Americans of all political stripes and across demographics support reforming the U.S. legal system to drive down the price of goods and services. 

Tell me more: The survey highlights the strong bipartisan support that exists for legal reforms to curb lawsuit abuse, increase transparency and lower costs for consumers. 

By the numbers: 

  • 83% of voters support greater transparency on hidden fees paid to billboard attorneys.
  • 77% favor legal reforms to lower auto insurance rates.
  • 75% want fee arrangements between attorneys and medical provider networks disclosed.
  • 67% support capping attorney fees.
  • 64% support reforms to eliminate the $4,200 hidden tax imposed on American families by lawsuit abuse—support that spans party lines (71% Republicans, 64% Independents, 59% Democrats).

 

TLR Thoughts: Meaningful reforms are needed at both the federal and state levels to help put an end to the unfair litigation practices increasing the cost of living for all Americans. In Texas, TLR is working together with the Lone Star Economic Alliance (LSEA) to urge reforms that will protect Texans from higher insurance costs; guarantee fair restitution for legitimate injuries; and create a legal environment that encourages medical providers to treat accident victims without fear of litigation abuse.

Read the full article here.

What happened: A recent report by the U.S. Chamber of Commerce found that tort lawsuit costs burdened Texas households with $38 billion in 2022, driving up insurance premiums, business expenses and the overall cost of living.

Tell me more: Texas represents “one of the leading states in year-over-year growth in tort costs.” From 2016-2022, tort costs increased at a rate of 9.7%. 

  • Rising litigation expenses in the state have forced businesses to raise prices, cut jobs or close, while also making insurance less accessible for individuals and employers.
  • According to the U.S. Chamber of Commerce study, “the high tort costs in Texas can be attributed to several factors that influence the state’s legal environment, which is known for significant nuclear verdictslarge jury awards exceeding $10 million. These large awards not only increase the cost of individual cases but also contribute to higher insurance premiums and legal fees, which are ultimately passed on to consumers and businesses.”

In his own words: “Small businesses are burdened with soaring insurance premiums that jeopardize their survival, while the constant wave of lawsuits drives up the costs of essential items like food and medical care.” Imad Sarkis, vice president of Exxpress Mart convenience stores and member of the Lone Star Economic Alliance (LSEA)

TLR Thoughts: One of TLR’s major priorities during the 2025 Texas Legislative Session is reining in the nuclear verdicts that are hurting small businesses and discouraging large corporations from allocating capital to Texas. To address this issue, TLR, alongside the Texas Trucking Association and the Texas Food and Fuel Association, created LSEA—a statewide business coalition comprised of more than 1,000 Texas individual citizens, companies and business associations working together to urge legislative reforms that will restore fairness and transparency to Texas’s legal system.

Read the full article here.

What happened: On Feb. 27, Texas state Sen. Bryan Hughes (R-Mineola) and state Rep. Morgan Meyer (R-University Park) filed companion landmark bills promising to reshape the American business landscape. Senate Bill (SB) 29/House Bill (HB) 15 aim to make Texas the preferred jurisdiction for legal domestication by proposing “a series of amendments to the Texas Business Organizations Code that would increase the certainty for how corporate decision-making is reviewed by the courts.”

Tell me more: With growing concerns over Delaware’s legal system becoming less reliable due to activist influence, SB 29/HB 15 seek to reinforce Texas as a hub for business excellence, innovation and growth.

Worth noting: The bills have garnered strong support from business leaders across Texas, including TLR, the Texas Stock Exchange (TXSE) and the Alliance for Corporate Excellence. 

  • TLR Chairman Dick Weekley said of SB 29/HB 15: “This critical legislation will further solidify Texas as the nation’s leader in business and economic development—and will draw even more companies to Texas, empowering them to create jobs and continue the Texas Miracle. TLR applauds Senator Hughes and Chairman Meyer for their strong leadership and for their commitment to business excellence in the state.”

TLR Thoughts: SB 29/HB 15 will help ensure that Texas remains the premier state for corporate operations, fostering an environment of innovation, job creation and economic growth for years to comeand positioning Texas as a major challenger to the decadeslong dominance of Delaware’s business courts.

Read the full article here.

What happened: Leaders in South Carolina and Georgia are aiming to pass a series of tort reform bills this year that would make their respective states more economically competitive and a less costly place to do business.

Tell me more: 

In South Carolina, Senate Bill 244 is one of several tort reforms bills now being debated in the statehouse.

  • South Carolina-based think tank Palmetto Promise Institute commented on the critical need to pass tort reform in the state, saying, “The lawsuit industry in South Carolina is out of control. Drive down any highway in our state, and you’ll see it lined with billboards for trial lawyers. The sheer quantity [is] a clear sign that something in our state is sorely wrong.”
  • Governor Henry McMaster (R-SC) addressed the issue during his State of the State address on Jan. 29. He said: “Future economic prosperity requires that our state’s civil justice system allows fair and prompt enforcement of our laws and proper redress of injury … Individuals and businesses, both large and small, are becoming unduly penalized for the actions of others – too often through crippling financial judgments and skyrocketing insurance premiums.”

 

In Georgia, Senate Bill 68 – critical tort reform legislation – last week passed the State Senate on a 33-21 vote and will now move to the House. 

  • According to the American Tort Reform Association, the bill addresses “numerous issues to improve the state’s civil justice system, including reforms to address ‘phantom damages’ and ‘jury anchoring’ as well as empowering juries with critical evidence regarding seat belt use in cases involving vehicle crashes.”

 

TLR Thoughts: More than 30 years after TLR first started reshaping Texas’s tort environment, South Carolina and Georgia are following in Texas’s footsteps in prioritizing tort reform. But our work in Texas is not done. This legislative session, TLR is advocating for legislative reforms that will restore fairness and transparency to the legal system, return stability to the insurance market and preserve Texas’s prosperous economy – the eighth largest in the world. Learn more at www.lseatx.com.

Read the full article here.

What happened: Uber has launched a seven-figure national ad campaign to push for reforms in insurance policies that are being exploited by personal injury trial lawyers and driving up users’ ride costs. 

Tell me more: Specifically, the San Francisco-based rideshare company is seeking legislative changes that would lower state-mandated insurance limits – and ultimately help “deter personal injury lawyers from taking advantage of lucrative policies and seeking high payouts.”

  • The advertising campaign includes sponsored placements in national and local political outlets, including Politico’s New York Playbook newsletter. Uber is also running ads on social media networks, YouTube and TV streaming platforms, urging consumers to take action to keep their rides “affordable.”
  • An advocacy website set up by Uber includes state-by-state data on how insurance costs factor into rideshare prices to raise awareness for its cause. For example, costs associated with Uber’s US rides insurance have increased by roughly 50% per trip in the last 3 years, even as Uber saw a decrease in the rate of overall crashes reported on the platform from 2017 to 2022.

 

In his own words: “… [The] legal system remains broken, allowing personal injury lawyers and a shady network of pain management doctors, chiropractors and third-party lenders to exploit rideshare insurance mandates for financial gain.” Adam Blinick, Uber Public Policy and Communications

TLR Thoughts: Uber is not alone. TLR is working right now with a coalition of nearly 1,000 businesses, associations and individuals to address the “shady network of pain management doctors, chiropractors and third-party lenders” who are exploiting Texas’s courts and costing every Texas consumer money. The Lone Star Economic Alliance (LSEA) is working to put an end to the unfair litigation practices raising the price of the goods you purchase every day. Sign up here to join the fight.

Read the full article here.