What happened: Rising legal costs—driven by frivolous lawsuits, aggressive attorney advertising and third-party litigation funding—are increasing the cost of living and doing business in the U.S. 

How we got here: Plaintiff’s lawyers spent $2.4 billion on legal advertising in 2023, with over 26 million local ads aired. 

• Third-party litigation funding hit $15.2 billion, contributing to a $443 billion economic burden on the U.S. 
• This “Tort Tax” adds approximately $3,600 to the annual expenses of every household.

Tell me more: Injury awards have increased by 319%, driving up insurance premiums, particularly in liability coverage. 

What else: The report warns that third-party litigation funding—which often carries interest rates above 200%—poses both economic and national security risks, allowing foreign entities to influence U.S. courts.

TLR Thoughts: Texas’ economic success is being undermined by predatory and fraudulent litigation practices. To maintain the state’s competitive advantage, protect consumers and control the rising costs of goods, services and insurance, it’s crucial to implement meaningful reforms that address these unjustified lawsuits.

Read the full article here.