What happened: A new poll released by Protecting American Consumers Together (PACT) underscores the strong, bipartisan support that exists among registered California voters for lawsuit abuse reform to help address the state’s affordability crisis. 

By the numbers:

• 90% say their cost of living has increased over the past year.
• 72% identify lawsuit abuse as a key driver of rising household costs.
• 83% want the Legislature to enact reforms to eliminate the estimated $5,500 “hidden tax” lawsuit abuse imposes on California families.
• 86% believe their legislators should prioritize stopping lawsuit abuse over protecting personal injury lawyers.

TLR Thoughts: The data is clear: Americans overwhelmingly recognize the link between lawsuit abuse and higher costs of living, and they want reform. While this survey focuses on California, other states also recognize the critical need for meaningful reform—including Texas. Without commonsense legal reforms, families and job creators alike face rising costs driven by an abusive legal system. TLR remains committed to advancing reforms that protect Texas consumers and promote fairness and transparency in our courts.

Read the full article here.

What happened: Gov. Greg Abbott has signed into law HB 11, legislation that will help alleviate the incredible burden that licensed professionals face when they move to the Lone Star State. 

Remind me: Texas has one of the most burdensome occupational licensing systems in the country, with 858 license types reported in 2024. 

• Notably, licensed professionals moving to Texas often face duplicative, expensive and time-consuming licensing requirements, delaying their ability to quickly get to work and contribute to the economy. 

Why it matters: The reforms included in HB 11 will help break down unnecessary regulatory barriers, allowing qualified professionals to work more quickly and to meet Texas’ growing workforce demands. 

TLR Thoughts: TLR was proud to support HB 11 this session through the Coalition for Regulatory Efficiency and Reform. Modernizing licensing requirements will help unlock greater economic opportunity throughout the state, and signal that Texas “values talent over regulations and bureaucracy.”

Read the full article here.

What happened: During the 89th Texas legislative session, lawmakers passed some of the most impactful and beneficial changes to Texas corporate law in history. 

Tell me more: 

• TLR-supported SB 29 codifies the business judgment rule, preventing wholly inappropriate derivative lawsuits aimed at imposing social or political outcomes on businesses.
• TLR-supported HB 40 further positions the Texas Business Court as the strongest competitor to Delaware’s Chancery Court, offering businesses greater legal clarity and corporate efficiency.

TLR Thoughts: SB 29 and HB 40 are critical, pro-business reforms adopted this session, helping to make Texas “the premier geographic location on the planet to create, grow, build, or maintain a business.”

Read the full article here.

What happened: U.S. Sen. Thom Tillis (R-NC) and U.S. Rep. Kevin Hern (R-OK) have introduced a proposal to close a tax loophole that allows foreign litigation funders to avoid paying taxes on proceeds from lawsuits against U.S. companies.

Tell me more: Third-party litigation funding has surged as global investment funds pour billions into U.S. lawsuits, often with questionable merit, seeking high returns from massive settlements or jury awards. 

By the numbers: In 2023, 39 investors committed approximately $15.2 billion to commercial litigation in the U.S.

• Litigation funders see average annual returns of 25%, fueled by large settlements and jackpot jury verdicts.
• Foreign investors currently pay zero U.S. taxes on lawsuit proceeds, since those earnings are treated as capital gains and exempt under current tax law.
• The average American household bore $4,200 in litigation-related costs in 2022, according to the U.S. Chamber of Commerce.
• The Tillis-Hern proposal would tax all litigation funders—foreign and domestic—at the ordinary income rate of 37%, plus a 3.8% surcharge, closing the existing loophole.

TLR Thoughts: The loophole in the tax code benefits entities that fuel costly, abusive litigation rather than investing in innovation and job creation. The Tillis-Hern provision preserves access to the courts for legitimate claims while ending unfair tax advantages that encourage predatory lawsuits and undermine U.S. businesses.

Read the full article here.

What happened: Texas lawmakers approved SB 293, a 25% pay raise for state judges—the first increase in 12 years—on the final day of the legislative session.

Why it matters: Texas ranks near the bottom nationally in judicial pay, making it harder to attract experienced, well-qualified candidates. 

• SB 293 also addresses long-standing concerns about linking judge salaries to lawmaker pensions by shifting oversight of future legislative pensions to the Texas Ethics Commission.

TLR Thoughts: Ensuring Texas has a strong, capable judiciary starts with attracting top legal talent—and fair, competitive compensation plays a major role. TLR strongly supported this reform because it will help expand and improve the pool of candidates seeking to serve, ultimately strengthening the quality of Texas’s judiciary and public trust in our courts.

Read the full article here.

What happened: An alliance between personal injury lawyers and certain medical providers has driven a surge in nuclear verdicts across Texas, inflicting serious harm on small businesses. 

Tell me more: In 2023, nuclear verdicts of $10 million or more reached a 15-year high. 

• Some cases, like a 2018 fender-bender in Upshur County, resulted in awards exceeding $100 million, fueled by exaggerated medical treatments from doctors tied to the plaintiff’s legal team. 
• These verdicts not only distort justice but raise insurance costs and pressure businesses to scale back, relocate or shut down.

TLR Thoughts: While many nuclear verdict cases relate to very serious injuries, the increase in the number and amount of these verdicts is distorting Texas’s legal system and discouraging allocation of capital to Texas. These awards are economically unsustainable. This session, TLR – alongside a coalition comprised of more than 1,200 Texas businesses, associations and individuals – urged meaningful reforms in SB 30 and SB 39, to prevent judicial actions that are distorting Texas’s litigation environment and yielding both nuclear verdicts and excessive verdicts in run-of-the mill cases. Although the legislation did not pass this year, legislative action remains vital for the health of Texas job creators and for the Texas families who are hit with skyrocketing costs due to these abusive lawsuits. TLR is calling on the Texas Legislature to prioritize this issue in the 90th Texas Legislative Session.

Read the full article here.

What happened: Texas continues to position itself as a major player in the financial sector, competing with financial hubs like New York and Delaware. Notably, on May 14, Governor Greg Abbott signed into law three pro-business bills. These legislative victories come as the Texas Stock Exchange prepares to launch trading in early 2026. 

Worth noting: One of the three pieces of legislation enacted by Gov. Abbott is TLR-supported Senate Bill 29 by Sen. Bryan Hughes and Rep. Morgan Meyer. The new law, effective immediately, enhances legal protections for companies and limits shareholder lawsuits, aligning with broader efforts to make Texas more attractive for corporate registrations. 

• Meanwhile, a proposed constitutional amendment on the November ballot would ban taxes on securities transactions, directly countering efforts in New York to reinstate a stock sales tax. 
• These steps reflect a coordinated strategy to make Texas the top destination for business incorporation and capital markets activity.

In his own words: “Texas is going in direct competition with Delaware and New York, Delaware for registrations and New York for listings and the exchange operators.” — Jim Lee, founder of the Texas Stock Exchange

TLR Thoughts: Texas continues to distinguish itself as a national leader, leading the charge in establishing a favorable climate for businesses to flourish, ultimately boosting job growth and innovation. By reducing litigation risk and rejecting burdensome financial transaction taxes, the Lone Star State is sending a clear message: Texas is open for business. 

Read the full article here.

What happened: Gov. Greg Abbott last week signed into law three significant pieces of legislation that Abbott’s office says will “boost Texas’ capital market environment and cement Texas as the Best State for Business.”

Tell me more:

• Senate Bill 29 protects sound business decisions from judicial overreach, giving corporate leaders more confidence to incorporate in Texas. 
• Senate Bill 1058 exempts certain payments made to a Texas-based stock exchange from the stock exchange’s state franchise tax calculations. 
• House Joint Resolution 4 includes an amendment to the Texas Constitution that will ban the imposition of an occupation tax on a Texas stock exchange and taxes on securities exchanges conducted by a Texas stock exchange. 

In his own words: “Texas is the reigning and undisputed champion for doing business in the United States of America.” — Gov. Greg Abbott

TLR Thoughts: The establishment of the Texas Business Court in September 2024, the launch of NYSE Texas in March 2025, the impending launch of the Texas Stock Exchange at the end of 2025 and Nasdaq’s expansion into Dallas are major victories reinforcing Texas’s reputation as the greatest state in the nation to live, work and innovate. TLR applauds the Texas Legislature for taking swift action this session to position Texas as the nation’s preeminent business hub. TLR-backed SB 29 and HB 40 – which has passed the House and awaits Senate passage – together position Texas as a major challenger to the decades-long dominance of Delaware’s business courts, and will help keep the Lone Star State an economic powerhouse.

Read the full article here.

What happened: Business leaders across Texas are calling on lawmakers to pass Senate Bill (SB) 30, common-sense legislation that will shed light on improper lawyer-provider coordination and arm juries with market-based evidence about the true value of medical services. SB 30 has passed the Senate and was today voted favorably out of the House Judiciary & Civil Jurisprudence Committee. The bill now awaits consideration by the full House.

Tell me more: The meaningful reforms in SB 30 will help curb meritless lawsuits and prevent unjustified damage awards. By uniformly providing relevant information to juries, fairer trials will be held in courtrooms across Texas, alleviating the vehicle insurance crisis that confronts every business in Texas, from the smallest to the largest.

Worth noting: SB 30 is one part of a two-step solution that will help restore balance to Texas’s courts – while ensuring that injured parties receive fair compensation. The other crucial step: SB 29, which has been signed into law by Governor Abbott, and which serves as a complement to Texas’s new specialized Business Court system by enhancing Texas’s corporate governance laws.

TLR Thoughts: Texas has worked hard to earn its reputation as a beacon for business—but that competitive edge is at risk. SB 29 and SB 30 together will help keep Texas’s economy from being derailed by an out-of-control litigation system while maintaining appropriate remedies for those truly harmed by others’ negligence. These reforms will give businesses the predictability they need to grow and create jobs.

Read the full article here.

What happened: The U.S. Virgin Islands has filed a public nuisance and false advertising lawsuit against Coca-Cola, PepsiCo and their local partners over plastic pollution tied to single-use bottles.

Tell me more: Officials allege the companies misled consumers about the recyclability of their packaging while continuing to flood the market with virgin plastic and failing to manage the resulting waste. The lawsuit claims this has contributed to a waste crisis threatening the islands’ environment, public health and tourism economy.

Worth noting: This isn’t the first time these companies have faced such claims. Similar lawsuits have been filed in California and New York—where one was dismissed—raising questions about the growing use of litigation to address broad public policy concerns.

TLR Thoughts: Lawsuits like these represent a concerning misuse of the legal system, targeting businesses for lawful conduct under the guise of a public nuisance. TLR is advocating this session for narrow legislation (SB 779) that will protect the Legislature’s authority to set public policy, while preserving statutory nuisance lawsuits for use when appropriate. SB 779 has passed the Texas Senate. The bill now awaits consideration by the House JCJ Committee.

Read the full article here.

What happened: On May 7, SB 30/HB 4806, common-sense legislation addressing lawsuit abuse in Texas was considered in the House Judiciary & Civil Jurisprudence (JCJ) Committee. The hearing followed Senate passage of the bill in mid-April.

In their own words: Public testimony underscored the “shadow system” that exists between certain personal injury lawyers and certain medical providers, leading victims into a “web of exploitation” designed to inflate medical damages.

• Dee Soule, Texas resident and medical billing expert: “The current system in Texas allows for trial attorneys and medical providers to use victims as ATMs, and I believe that is unacceptable. The truth is, I’m angry, and it needs to stop. HB 4806 is one step in the right direction.”
• Soule also testified: “Victims are often pulled into a shadow system where charges are inflated, relationships are undisclosed, and medical billing is manipulated to support lawsuits, not patient care.”
• Another witness stated: “Bills for routine procedures can go from $1,500 to $150,000 due to the referral network between medical providers and personal injury attorneys.”
  

TLR Thoughts: Witness after witness called attention to a pattern of abuse in Texas’s personal injury system—one where inflated medical bills and hidden referral arrangements enrich a few at the expense of real victims and honest consumers. SB 30/HB 4806 includes meaningful reforms that will close loopholes encouraging manipulation of the system at the expense of Texas small and medium-sized businesses, consumers and courts. 

Read the full press release here.

What happened: Dark-money special interest groups are running deceptive TV ads, texts, mail and social media across Texas to mislead voters, smear lawmakers and block common-sense legal reforms that aim to cut down on the frivolous lawsuits helping to drive up Texans’ insurance rates and the cost of everyday goods and services.

Tell me more: These derogatory campaigns are being bankrolled by powerful personal injury lawyers who are deliberately hiding their identities while pushing false narratives to protect their financial interests and confuse Texas voters. 

TLR Thoughts: Texans see through the big lies and dark money. In fact, more than 1,150 Texans, Texas job creators and associations stand in support of the meaningful reforms included in SB 30 (Schwertner)/HB 4806 (Bonnen) and SB 39 (Birdwell)/HB 4688 (Leach) through the Lone Star Economic Alliance (LSEA). TLR is a founding member of LSEA alongside the Texas Trucking Association and the Texas Food and Fuel Association. Together, TLR and LSEA are working to create a legal system that’s fair, transparent, and focused on relevant facts—not one that rewards manipulation and abuse.

Read the full article here.