This week brought new evidence of how lawsuit abuse drives up costs for families and businesses. Excessive verdicts (sometimes called nuclear verdicts) continue to inflate prices across the supply chain, with litigation projected to drive a significant share of future food-price inflation. California’s staggering $72 billion tort price tag shows what happens when excessive lawsuits go unchecked. And new research highlights the explosion of attorney advertising that fuels inflated verdicts and higher premiums.
TLR remains focused on exposing these hidden costs, protecting Texas consumers, and ensuring our civil justice system remains fair, predictable, and affordable. Texas has led before, and we must continue leading to keep our state competitive and our communities strong.
What Happened: A new analysis shows that nuclear verdicts (verdicts of $10 million or more) are becoming more frequent and far larger, driving up costs across the supply chain. According to the U.S. Chamber Institute for Legal Reform, the median nuclear verdict reached $36 million in 2022, with verdicts over $50 million rising another 6 percent. Motor carriers say these oversized awards are a major threat to affordability, with tort reform ranking as their second-biggest concern. Read More
Tell Me More: An October American Transportation Research Institute survey indicated tort reform was the second-biggest concern among motor carriers. Their latest research also found that motor vehicle crash lawsuits are now one of the most common sources of nuclear verdicts, and the consequences hit consumers long after a case ends.
The Institute expects commercial vehicle litigation alone to account for 15 percent of future food-price inflation, while every $1 million increase in tort costs reduces U.S. GDP by $2 million. Investors are also bankrolling lawsuits behind the scenes, pressuring companies into costly settlements that ultimately raise prices for families.
TLR Thoughts: Excessive (nuclear) verdicts are not isolated events; they are a direct driver of higher prices, higher premiums, and rising costs for every household. When lawsuit abuse inflates verdicts far beyond actual damages, insurers raise rates, businesses pass on costs, and families pay more for everything from groceries to transportation. Texas has led the nation in lawsuit reform before, and staying vigilant is essential to protecting affordability and keeping our legal system fair and predictable.
What Happened: Attorney advertising is exploding nationwide, with spending up 260 percent since 2017 and more than 26.9 million ads purchased in 2024 alone. R Street’s research finds that this surge in billboards, radio spots, and online ads is inflating civil litigation awards and pushing liability premiums higher for consumers. As lawsuit-driven verdicts grow, every household ultimately pays more for insurance and everyday goods. Read More
Tell Me More: Advertising that promotes “big money” expectations in personal injury cases fuels inflated damages and encourages excessive litigation. Many ads mislead consumers, distort medical information, or promise unrealistic payouts, contributing to a cycle of higher verdicts and rising premiums. Regulators often impose only mild penalties for deceptive ads, and new marketing tactics like SEO-driven websites, call centers, and unsolicited digital outreach are accelerating intake for mass-litigation firms. In some cases, misleading ads about prescription drugs have even led patients to stop taking necessary medications, with dangerous or fatal consequences.
TLR Thoughts: Out-of-control legal advertising feeds the lawsuit machine, inflates jury expectations, and drives up premiums for every family. When attorney ads function like casino promotions that promise outsized jackpots, the result is higher tort costs and a heavier financial burden on consumers. Guardrails that protect patients, prevent deceptive practices, and limit investor-driven litigation help ensure a fair system that prioritizes consumers, not lawsuit mills.
What Happened: California’s culture of excessive litigation is driving up costs for homeowners, seniors, and small businesses. In 2022, the state’s total legal liability expenses reached $72 billion, which comes out to $5,429 per household. Those inflated tort costs are shrinking care options, pushing providers out of communities, and placing enormous pressure on families already struggling with affordability. Read More
Tell Me More: When one lawsuit can close a care facility or spike insurance premiums for a local business, the entire community feels the impact. Seniors on fixed incomes face rising fees, small businesses see higher operating costs, and rural areas lose essential service providers. Other states have shown a different path. Florida’s recent lawsuit reforms reduced abusive claims, stabilized its insurance market, and helped lower premiums for consumers. California’s experience highlights what happens when lawsuit abuse goes unchecked.
TLR Thoughts: $72 billion in tort costs is a direct trial lawyer tax on California families. Lawsuit abuse inflates premiums, raises prices, and drains resources from the people who can least afford it. The consequences are clear: fewer care options, higher household expenses, and growing barriers for small businesses. Texas has led the nation in lawsuit reform before, and California’s struggles reinforce why protecting affordability and maintaining a fair legal system must remain top priorities.
Billboard lawyers are now targeting America’s favorite pastime: sports. From shuttered pickleball courts to roller rinks and bike parks pushed out by frivolous claims, lawsuit abuse is raising costs and closing down the activities families rely on for community and connection. When lawyers chase payouts instead of fairness, consumers lose access, and affordability takes another hit.
That is how much future food-price inflation litigation is expected to drive. Nuclear verdicts and inflated tort costs ripple through the supply chain, raising prices for every family. When abusive lawsuits inflate the cost of transporting goods, Texans feel it in every grocery bill.
