David Williams, president of the Taxpayers Protection Alliance (TPA), a non-profit organization that provides analysis on the government's impact on the economy, expressed his concerns to Federal Newswire about trivial lawsuits. He stated that these lawsuits not only waste taxpayer money but also hurt consumers through higher costs. He highlighted the insurance industry as an example of attorneys exploiting the legal system for profit.
According to Williams, "Our current system of civil justice enables irresponsible attorneys to exploit the system for their own gain. Not only do frivolous lawsuits take taxpayers dollars to litigate, but consumers pay more because businesses must build the potential costs of mass tort litigation into their prices. The insurance industry gives a prime example of this."
In December 2023, a report from the U.S. Chamber of Commerce Institute for Legal Reform (ILR) found that commercial tort costs were disproportionately impacting small businesses. According to ILR's findings, between 2020 and 2021, commercial tort costs increased almost twice as much as commercial revenues. During this period, commercial revenues increased by 6.3%, while commercial tort costs rose from $291 billion to $347 billion - a 19.24% increase. The report further revealed that small businesses accounted for $160 billion of the total $347 billion.
Another report by the American Tort Reform Association disclosed that law firms spent $6.8 billion between 2017 and 2021 advertising mass tort lawsuits to attract additional plaintiffs. This report estimated that "excessive tort costs" result in an annual loss of $472.88 billion in output to the U.S economy. It also noted that taxpayers in some states pay "tort taxes" due to high state tort costs; California taxpayers reportedly pay a "tort tax" of $2,119 each year - the highest in the nation.
Aviva Wein, general counsel for Johnson & Johnson, testified during a Congressional hearing in September that "the mass tort plaintiffs’ bar abuse and exploitation of the civil justice system" poses a threat to the U.S. economy and judicial system. Wein said that plaintiffs, who should be the focus of the litigation process, have become "pawns" to their attorneys and financiers, who seek to profit from them. She further stated, "The baseless and excessive mass tort litigations cause harm to manufacturers they target who are forced to incur extraordinary fees to litigate, as well as the consumers they mislead as to the true cause of their harm."
Several insurance companies, including United Services Automobile Association (USAA), Geico General Insurance, and Humana, are currently facing class action lawsuits, according to Top Class Actions. The lawsuits center around allegations of underpaying on insurance claims. Allstate and Owners Insurance recently reached settlements in class action lawsuits; Allstate agreed in November to settle with a class of its New Mexico policyholders for at least $2.2 million.
Williams has dedicated three decades in Washington, D.C., working towards exposing government waste, according to the TPA website. He has participated in government waste panels in South Korea and France and advised taxpayer groups globally. His work has been featured in The New York Times among numerous radio and television outlets.
