Texans for Lawsuit Reform announced that frivolous lawsuits cost the U.S. economy about $500 billion each year and highlighted reforms in Texas aimed at reducing these costs for families.
According to Texans for Lawsuit Reform, frivolous lawsuits act as a hidden tax that every family pays, with investors funding the suits and lawyers receiving substantial payouts. The organization said that consumers face higher prices and increasing insurance premiums as a result. Texas has led the nation in reform efforts for decades and plans to continue advocating for affordability.
The organization’s data shows that Texas tort costs reached nearly $38 billion in 2022, averaging $4,594 per household in the state. Reforms have reportedly lowered liability costs for various occupations and reduced the number of frivolous lawsuits filed.
Nationally, costs and compensation within the U.S. tort system totaled over $529 billion in 2022, equating to more than $4,200 per household across the country. Excessive litigation is said to eliminate 4.8 million jobs and hinder economic innovation.
Texans for Lawsuit Reform (TLR) is recognized as a leading advocate in Texas for a fair and balanced civil justice system. Its mission supports freedom, innovation, and job creation through an efficient legal framework led by independent judges. Over three decades, TLR’s successful promotion of tort reform has contributed to Texas achieving the eighth largest economy globally and hosting more Fortune 500 companies than any other state.
