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The Law Firm Hitting Businesses With Thousands of Disability Suits

WSJ, July 14, 2024

The Law Firm Hitting Businesses With Thousands of Disability Suits

  • Here’s what happened: The Wall Street Journal takes a look at the surge in lawsuits under the Americans with Disabilities Act (ADA), with some law firms specifically targeting small businesses for website accessibility violations.
  • Dig into the details: Enacted in 1990, the ADA prevents discrimination against individuals with disabilities, and includes online activities. Importantly, it allows plaintiffs to recover attorney’s fees but not damages.
    • This firm alone accounted for about 25% of all digital ADA litigation.
  • How it works: Firms like Mizrahi Kroub, the New York law firm highlighted in the article, often file multiple lawsuits on behalf of the same plaintiff against several businesses, allegedly using cut-and-paste pleadings for quick settlements. 
    • Electric Bike Technologies, which was sued by Mizrahi Kroub and faced $46,000 in legal fees and an additional $13,000 to update its website.Why it matters: Defending these lawsuits can be a serious strain on small businesses. 
  • What about Texas? In 2017, the Texas Legislature passed House Bill 1463 requiring businesses to be notified of accessibility barriers and given a chance to fix them before a lawsuit can be filed. The aim is to allow businesses to come into compliance without incurring legal fees when a simple fix will suffice. Catch-up quick
  • TLR Thoughts: This is another example of statutory attorney’s fees creating an incentive for lawyers to build a cottage industry around specific litigation. The ADA is an important safeguard for the millions of Americans living with disabilities, but its exploitation by unscrupulous law firms has created a persistent and expensive pattern of lawsuit abuse.

Read the full article here.