Protecting American Consumers Together (PACT) has released a video that underscores the impact of lawsuit abuse by what it describes as "billboard attorneys" on small businesses. The announcement was made via YouTube.
According to PACT's release, the video is part of its "Billboard Lawyers Ruin Everything" series. It highlights how aggressive advertising and litigation by plaintiff lawyers create significant risks for local shops, cafes, and service providers. The organization argues that these lawsuits often seek quick settlements, which can destabilize family-run operations with thin margins, potentially leading to layoffs or closures. PACT presents the video as a public-awareness initiative to demonstrate the mounting exposure everyday businesses face from what it terms frivolous legal actions.
ABC7 News Bay Area reports that Lima, a family-run Peruvian restaurant in Concord, California, announced its closure following a settlement of a discrimination lawsuit over its "Ladies’ Night" promotion. The report states that the owner cited the financial burden of the lawsuit and ongoing cost pressures as reasons for closing at year’s end. This case illustrates how disputes related to California’s Unruh Civil Rights Act can be existential threats to small hospitality businesses.
ABC News highlights another example involving former Washington, D.C., administrative law judge Roy Pearson, who sued a family dry-cleaning shop for $54 million over an allegedly lost pair of trousers. Although the court ruled in favor of the dry cleaners, ABC News reported that the prolonged litigation imposed significant strain and notoriety on the business. The Institute for Legal Reform notes that this case continued to generate appeals and attention for years and became emblematic of "frivolous" lawsuits in public discourse.
According to its website, Protecting American Consumers Together is a national advocacy and education organization focused on protecting consumers and small businesses while promoting fairness and transparency in the civil justice system. PACT's campaigns highlight what it sees as exploitative practices by "billboard lawyers" and the downstream costs of lawsuit abuse. The group produces videos, statements, and policy messaging aimed at supporting reforms intended to safeguard communities and local enterprises.
