Texans for Lawsuit Reform, Texas Stock Exchange, Alliance for Corporate Excellence Laud Passage of Major Legislation Establishing Texas as Nation’s Preeminent Business Hub
What happened: Last week, Senate Bill (SB) 29 passed both chambers of the Texas Legislature with overwhelming support. The bipartisan bill now heads to the Governor’s desk for signature.
What happened: Last week, Senate Bill (SB) 29 passed both chambers of the Texas Legislature with overwhelming support. The bipartisan bill now heads to the Governor’s desk for signature. Read more
Tell me more: SB 29 introduces a series of corporate reforms that will make Texas the preferred destination for corporate relocation and reincorporation by codifying the business judgment rule and allowing corporations to establish a minimum ownership threshold before a shareholder or group of shareholders can pursue a derivative claim, among other provisions.
TLR Thoughts: The reforms included in SB 29 by Sen. Bryan Hughes— together with the reforms included in House Bill (HB) 40 by Rep. Brooks Landgraf—will help position Texas as a major challenger to the decades-long dominance of Delaware’s business courts. TLR applauds the Texas Legislature for taking swift action this session to reinforce Texas’s reputation as the greatest state in the nation to live, work and innovate.
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. Read more
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.
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. Read more
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.
