Across the country, momentum is growing for meaningful lawsuit reform. From renewed national calls to rein in lawsuit abuse and increase transparency in third-party litigation funding, to progress right here in Texas, strengthening our courts and economy, the message is clear: fairness fuels economic growth.
What Happened: From phony slip-and-fall claims to inflated medical lawsuits, a growing wave of fraudulent and exaggerated litigation is draining small businesses and driving up costs for consumers. As The Well News reports, these abuses have turned the personal injury system into a high-profit industry, with trial lawyers filing increasingly aggressive cases that have little to do with obtaining justice. Read more.
Tell Me More: ABC’s New York affiliate recently uncovered staged personal injury claims that caused insurance premiums to soar for property owners, with costs then passed down to tenants and families. One insurer, Union Mutual Fire Insurance, has filed multiple federal RICO suits against personal injury law firms and clinics allegedly involved in organized fraud. States like Georgia are responding with new laws to tie damages to actual evidence and ensure businesses are only liable for premises and factors they directly control.
TLR Thoughts: Texas has long led the nation in proving that fair courts and clear rules make life better for everyone. Lawsuit abuse is not only unjust, it is expensive. Excessive and frivolous litigation raise rents, inflate insurance premiums and drive jobs out of communities. TLR will continue working to ensure that Texas remains a model for the nation by promoting reforms that promote honesty, restore balance and protect consumers from a system gone wrong.
What Happened: A recent Bloomberg Law analysis reveals that third-party litigation funders—private investors who finance lawsuits for a share of the winnings—are quietly exerting control over the cases they bankroll. Despite public claims to be “passive financiers,” major funders like Burford Capital have used contract provisions to block settlements and direct litigation strategy, raising concerns about transparency and fairness in U.S. courts. Read more.
Tell Me More: Litigation funding has become a multibillion-dollar industry, often hidden from judges, defendants and even plaintiffs. Contracts can give funders the power to approve or reject settlements, replace counsel or dictate whether cases proceed to trial. Some agreements even override court orders or protective rules by requiring plaintiffs to share confidential documents or pay sanctions originating with the funder’s conduct. As these abuses come to light, legal experts are urging the Advisory Committee on Civil Rules to mandate the disclosure of litigation funding arrangements.
TLR Thoughts: Secretive outside influence in America’s courts is incompatible with justice. Hidden financiers—some foreign or politically motivated—should never dictate the outcomes of U.S. lawsuits. Texas has led the nation in creating courts grounded in transparency and accountability, and TLR supports national reforms that bring the same integrity to litigation funding. Fairness requires sunlight, not secrecy.
Across Texas, leaders like Governor Greg Abbott are recognizing Lawsuit Abuse Awareness Week and renewing their commitment to maintaining fair courts and prioritizing common-sense reforms.
TLR Thoughts: We applaud Governor Abbott, Citizens Against Lawsuit Abuse (CALA), and advocates across Texas for joining in this effort. Texas has shown for decades that fighting lawsuit abuse is essential to keeping our economy strong and affordable for every Texan.
