New Alliance to Stop Rising Transportation Insurance Costs

What happened: As a founding member of the Lone Star Economic Alliance (LSEA), TLR is advocating for legislative reforms to address the rising cost of doing business in Texas—which threatens the economic health of businesses of all sizes, across all sectors. Read more

• LSEA, BTA México and RioPlex joined forces to discuss the priority issue during a meeting at the border in late January. Nearly 50 transportation entrepreneurs from both sides of the border were in attendance.

Remind me: LSEA is a coalition of more than 900 job creators, citizens and business associations that have joined together to put a stop to abusive lawsuits that make it hard to do business in Texas and which needlessly increase the cost of consumer goods and services.

Worth noting: Rising insurance premiums, driven by lawsuits featuring inflated medical costs and misleading tactics, are draining resources businesses could use to hire new employees, expand facilities, pay taxes and even survive. 

TLR Thoughts: TLR is proud to support LSEA’s efforts to restore fairness in Texas courtrooms. By advocating for reforms to reduce the impact of excessive lawsuits on the cost and availability of insurance, TLR is helping promote Texas’s economic dynamism and job growth.

Meta Is in Talks to Reincorporate in Texas

What happened: Meta is exploring moving its legal incorporation from Delaware to Texas, following its decision to relocate trust and safety teams to the state for increased neutrality. Read more

Remind me: Meta, which owns Facebook, Instagram and WhatsApp, has been incorporated in Delaware since 2004, benefiting from that state’s respected corporate court system. 

• However, as Delaware courts have introduced uncertainty into corporate governance statutes, Texas has emerged as an increasingly attractive alternative, offering incentives, a newly launched business court specializing in complex disputes and a stock exchange. The Texas Business Court—which TLR helped create in 2023—is one of the most transformative changes to Texas’s legal system in decades.

Worth noting: Texas continues to attract businesses to the state, with major companies like Tesla and Oracle already making the move.

TLR Thoughts: As more companies seek out business-friendly states that foster innovation and minimize unnecessary legal costs, Texas has an opportunity to further solidify its role as a leader in corporate governance. This competitive advantage must be preserved by legislative action that ensures Texas’s lawsuit environment is fair and predictable and its regulatory climate reasonable.

Mass Tort Atty Files Ch. 11 Owing $202M To Litigation Funders

What happened: A Houston mass tort attorney filed for Chapter 11 bankruptcy, listing over $200 million in litigation funding liabilities due to prolonged cases and rising debts. Read more

Tell me more: Truett Bryan Akin IV, a co-founder of the mass tort firm AkinMears LLP, is struggling under financial pressure from delayed case resolutions and mounting litigation funding debt, with legal disputes over unpaid investor returns adding to the strain.

Worth noting: Lawsuits by litigation funders and other creditors are becoming more common as firms fail to repay mounting debts linked to long-running litigation. 

TLR Thoughts: This case highlights the growing financial instability within the mass tort industry, where excessive reliance on litigation funding feeds litigation but also creates unsustainable debt for law firms. It’s crucial to address the role of litigation funders in our litigation system, to restore balance, and to ensure that the legal system serves justice, not profit-driven agendas.