New Report: Lawsuit Abuse on the Rise in America

Class action and mass tort suits continue to enrich attorneys at the expense of consumers

NEW YORK, NY – The concept of lawsuit abuse is nothing new in America; the term “ambulance chaser,” used to describe lawyers that opportunistically seek clients and encourage them to sue, has been around for decades. Yet the modern form of class-action suits and mass torts has ballooned legal costs, making the U.S. one of the most litigious nations in the developed world. The 20th edition of Manhattan Institute’s Trial Lawyers, Inc. series, released today, chronicles the continued rise of mass litigation and its impact on consumers.

Legal shifts in the 1960s made it easier than ever for enterprising attorneys to pressure businesses with massive class-action suits and mass-tort litigation. Today, the cost of lawsuits in the U.S. is 40 percent higher than neighboring Canada—and more than 2.6 times higher than in the European Union.

Despite numerous attempts for reform, including the one currently in Congress, trial lawyers continue to develop ever-evolving tactics to find clients to “represent” in order to collect a large payout for themselves, while their clients receive almost nothing. The costs of such lawsuits are rising rapidly: tort litigation spending has more than quadrupled since the 1970’s, and such suits are costing jobs for workers, driving up prices for consumers, and forcing small businesses to shutter their doors.

The report is the latest in the Trial Lawyers, Inc. series, which has been tracking litigation abuse and barriers to reform since 2003.

Click here to read the full report.