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.

• 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.

Read the full article here.

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.

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.

Read the full article here.

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.

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.

Read the full article here.

What happened: Gov. Greg Abbott celebrated Texas’s record job growth, with significant increases in the labor force and the number of Texans working, adding millions of jobs under his leadership.

Tell me more: Texas’ commitment to business growth and workforce development has helped it surpass national job growth, strengthening its position as the nation’s job creator.

By the numbers: Texas’ labor force hit a historic high of 15,575,900.

• 14,922,200 Texans are employed, including self-employed individuals.
• Since 2015, Texas has added over 2.5 million jobs under Governor Abbott’s leadership.

TLR Thoughts: Texas’ job growth reflects the state’s pro-business environment, supported by lawsuit reforms that reduce frivolous litigation and allow businesses to thrive without excessive legal burdens. By maintaining a legal system that promotes fairness and efficiency, Texas remains the best state to do business, attracting employers and sustaining long-term job growth. 

Read the full article here.

What happened: Texas, known for its business-friendly reputation, is burdened by decades of regulatory accumulation that create significant challenges for small businesses and consumers.

Tell me more: Excessive regulations increase compliance costs, driving up consumer prices and limiting competition. 

• Reforms in other regions show that reducing regulatory burdens can boost economic growth and enhance business opportunities.

By the numbers: Texas has 274,469 regulatory restrictions.

• A 10% reduction could grow the economy by $52 billion by 2037.
• A 40% reduction could yield over half a trillion dollars in economic growth.

TLR Thoughts: Texas’ excessive regulatory framework threatens its economic competitiveness, especially for small businesses and consumers, which is why TLR is part of the Coalition for Regulatory Efficiency and Reform. We will support legislation aimed at systematically reducing red tape and preventing future accumulation of regulations. By adopting proven strategies, Texas can stimulate substantial economic growth and solidify its reputation as a leader in pro-business governance.

Read the full article here.

What happened: Texas is not alone. Other states are experiencing lawsuit abuse, too. Indiana has enacted new tort reform measures, while Pennsylvania and Georgia are pursuing reforms to improve their legal environments.

Tell me more: Indiana now allows juries to consider the plaintiff’s seat belt usage in determining damages in an injury case and is splitting trucking cases into two phases: determining driver fault and damages first, then broader evidence on company misconduct in the second, if needed.

• In Georgia, Gov. Kemp is calling for comprehensive tort reform, warning that excessive lawsuits are driving up costs and threatening businesses.
• Reforms proposed in Pennsylvania include regulating third-party litigation funding and capping attorney contingency fees.

Worth noting: Texas set a precedent with its seat-belt-use disclosure law in 2003 and bifurcated trial requirements for trucking cases in 2021, solidifying its leadership in tort reform.

TLR Thoughts: Abusive litigation practices and the resulting economic consequences are not limited to Texas. That’s why TLR remains committed to passing legislation in Texas that eliminates abuses, makes our courts more fair and efficient and helps Texas maintain its economic leadership.

Read the full Indiana article here.

Read the full Georgia article here.

What happened: The Los Angeles wildfires have prompted discussions in Congress about expanding the National Flood Insurance Program to cover other disasters, shifting the financial burden to taxpayers across the nation.

California’s crisis: California’s insurance market is struggling due to years of suppressed rates, poor wildfire management and rising insurer liabilities.

Florida’s success: Florida tackled its insurance crisis with tort reforms that reduced litigation abuse, stabilized the market and attracted new insurers.

Worth noting: The 1945 McCarran-Ferguson Act grants states authority over insurance regulation, a system that has worked for over 80 years. 

• Federalizing insurance places the burden of state-level mismanagement on taxpayers nationwide.

TLR Thoughts: California’s insurance failures show the consequences of mismanagement, while Florida’s reforms highlight the benefits of state-level solutions. TLR supports maintaining state authority over insurance regulation and encourages policies, but that has to be coupled with a lawsuit environment that does not reward plaintiff lawyers for pursuing meritless lawsuits that cost all Texans money through increased costs for goods and services.

Read the full article here.

What happened: Nuclear verdicts are driving up insurance costs, reducing coverage availability and increasing financial risks for insurance providers and policyholders.

Remind me: Median nuclear verdicts have more than doubled, rising from $21 million in 2020 to $44 million in 2023, with no signs of slowing.

Tell me more: The rise in nuclear verdicts is reshaping the insurance landscape.

• Insurers are reducing coverage limits and increasing reserves to absorb financial risks.
• Policyholders face higher premiums, limited access to adequate coverage and exposure to costs exceeding policy limits.
• Small and medium-sized businesses are particularly vulnerable to the financial fallout from these awards.

TLR Thoughts: The rise in nuclear verdicts poses a direct threat to Texas’ economic stability. These runaway jury awards drive up insurance costs for businesses, increase financial uncertainty and hinder growth. Legislative action is essential to curb these excessive payouts and protect businesses and consumers from their widespread impact.

Read the full article here.

What happened: Mass tort litigation, driven by attorneys and profit-focused funders, overwhelms the federal civil system.

Tell me more: While the multidistrict litigation (MDL) process aims to streamline litigation, the MDLs created by federal courts often attract baseless claims and exploitative third-party funders, distorting the pursuit of justice.

By the numbers: MDLs account for 65 percent of the federal civil caseload, up from 38 percent a decade ago.

• Excessive mass tort litigation costs taxpayers billions annually, with federal, state and local tax revenue losses estimated at $122.2 billion.

TLR Thoughts: Profit-driven mass tort litigation has become an economically draining industry that burdens taxpayers, hinders businesses, and undermines justice. Fortunately, Texas was ahead of the curve on this litigation epidemic. Through TLR’s efforts in 2003 to pass a tort reform bill that remains the most comprehensive bill of its kind every enacted by any state, Texas limited abuses of class action lawsuits and created an MDL process that is both efficient and seldom abused.

Read the full article here.

What happened: New York courts dismissed a plastic pollution lawsuit against PepsiCo, while Ford County, Kansas, filed one against petrochemical companies over misleading recycling claims.

Tell me more: New York’s ruling stresses that plastic waste issues require legislative action, not judicial. 

• Ford County’s lawsuit claims petrochemical companies misled the public about plastic recycling.
• Both lawsuits asserted a public nuisance claim.

Worth noting: The New York ruling sets a precedent that may limit future public nuisance lawsuits, while Ford County’s case highlights the fact that any city or county having a pro-lawsuit government can pursue a public nuisance action.

• Ford County’s action is the first county-level lawsuit of its kind, following California’s similar state-level action.

TLR Thoughts: As we have said many times before, public nuisance lawsuits are an attempt to circumvent state legislatures and regulate societal conduct through litigation. New York courts got it right, while the Ford County lawsuit demonstrates the breadth of the problem. Texas lawmakers have an opportunity to prevent similar nuisance claims from gaining traction in the state, ensuring that public policy is set by the legislature, not by county governments through lawyer-driven lawsuits.

Read the full New York article here.

Read the full Kansas article here.

What happened: Lawsuit abuse costs American households over $4,000 annually. State lawmakers across the country are taking stronger action to fix the problems.

Remind me: In 2022, the U.S. tort system cost $529 billion, averaging $4,207 per household.

• Without reform, overall tort costs could surpass $900 billion by 2030.

Tell me more: Several states have enacted laws targeting predatory litigation practices.

• The Wisconsin legislature passed a bill capping noneconomic damages in commercial motor vehicle lawsuits at $1 million, but the Governor vetoed it.
• Florida outlawed inflated medical bills at trial and reduced the statute of limitations for filing lawsuits.
• Montana now requires third-party litigation financiers to register and disclose their terms.

TLR Thoughts: Fueled by deceptive litigation tactics and third-party litigation financing, lawsuit abuse is harming businesses, consumers and the economy. TLR is committed to pushing for reforms in Texas to stop abusive tactics and ensure fairness in our legal system. By tackling predatory practices, we can create a stronger, more just environment for all Texans.

Read the full article here.

What happened: Eight individuals and two law firms in New Orleans have been indicted in a scheme involving staged car accidents and fraudulent insurance claims.

Remind me: Insurance fraud schemes like staged accidents are becoming increasingly common.

• Remember this viral staged crash in New York?

Tell me more: The indictment details a scheme where some participants deliberately caused accidents before fleeing the scene, enabling false insurance claims and lawsuits.

TLR Thoughts: The alarming rise of staged accident fraud in states like New York and Louisiana shows how easily fraudsters exploit the system for financial gain. But not only do they make money, they cost you money! Scams like staged accidents result in higher insurance premiums for all drivers. Let’s hope this kind of cheating stays somewhere else!

Read the full article here.