What Happened: Recent reforms are reshaping Texas corporate law and positioning the state as a leading jurisdiction for incorporations. Among the most significant changes is Senate Bill (SB) 29, a TLR-priority bill passed and enacted during the 2025 Texas Legislative session. Read more
Tell Me More: SB 29 codifies and expands the business judgment rule, creating heightened pleading standards and broader protections for directors and officers acting in good faith. The law also allows corporations to set minimum ownership thresholds (up to 3%) for bringing derivative lawsuits, curbing so-called “nuisance” litigation. In addition, SB 29 increases flexibility in areas like voting requirements and share authorizations, making Texas corporate law more competitive with Delaware.
TLR Thoughts: SB 29 represents a cornerstone victory for Texas. By strengthening Texas corporate law, SB 29 will entice companies to relocate and invest here—keeping the Lone Star State competitive, protecting jobs and ensuring that shareholder litigation is fair, not abusive.
What Happened: In California, excessive litigation is creating a drag on the economy and limiting opportunity for businesses and families. The state’s civil justice system has earned a reputation as one of the most expensive in the nation, driving up costs for employers and consumers alike. Read more
By The Numbers: Los Angeles lawsuit payouts have surged from $64 million to nearly $300 million annually over the past decade. A majority of Californians report their insurance premiums have risen, with many small business owners citing 40–50% increases in just the past year. One estimate puts the annual cost of lawsuit abuse at $5,500 per household.
Worth Noting: Los Angeles officials have described billboard trial lawyers as “getting rich off taxpayers.” Inflated medical claims, attorney referral mills and predatory lending practices all drive up settlement costs, forcing insurers, businesses, and ultimately families, to shoulder the burden.
TLR Thoughts: California is living proof of the cost of unchecked lawsuit abuse. Such abuse drains taxpayer resources, pushes jobs and employers out of state, and makes life more expensive for families. TLR continues to advocate for reforms that will help ensure Texas does not travel down the same errant path as California—reforms that protect victims while ensuring our civil justice system supports growth and opportunity.
What Happened: Illinois Governor J.B. Pritzker recently signed Senate Bill 328, expanding the state’s jurisdiction in toxic tort cases. The law allows plaintiffs to sue companies registered or doing business in Illinois for alleged exposure to toxic substances, even if the exposure occurred outside the state. The law lowers standards for causation and increases potential liability for manufacturers and employers. Read more
Worth Noting: Legal experts warn that the broad definition of “toxic substance” and the “registration by consent” standard could make Illinois a magnet for forum shopping and speculative litigation. Illinois already ranks among the nation’s top “Judicial Hellholes,” and this measure is expected to add to crowded dockets.
TLR Thoughts: This new law highlights how quickly a legal environment can tilt against businesses when trial lawyers drive policy. In Texas, TLR is working hard to prevent improper trial lawyer interference, and to advocate for meaningful reforms that ensure fairness and predictability in our courts while discouraging abusive lawsuits that harm jobs and families.
National voices are calling out how lawsuit abuse threatens retirement security:
CASE for America highlighted the risk to average Americans when predatory trial lawyers target 401(k) investments:
60 Plus Association emphasized how seniors are especially vulnerable to these opportunistic lawsuits, calling for stronger protections:
TLR Thoughts: Whether it’s retirement accounts, health care, or local businesses, abusive litigation drives up costs for families. TLR is working to keep Texas a leader in fighting back against lawsuit abuse and protecting the Texas Miracle.
