Protecting American Consumers Together (PACT) has issued a statement following public testimony on House Bill 4806, which addresses lawsuit abuse in Texas. Executive Director Lauren Zelt said that the testimony revealed how the current legal system traps victims in a "web of exploitation" and increases costs for Texas families by an estimated $4,600 annually. Witnesses included a former personal injury client who described unethical attorney–doctor arrangements and a small business owner who faced a $5 million lawsuit. Committee Chairman Jeff Leach challenged trial lawyers over misleading dark-money campaigns. State Representative Greg Bonnen said the bill would preserve access to justice for victims. Neurosurgeon Dr. Jay Barrash testified that he has seen unnecessary, inflated medical procedures tied to litigation schemes.
"This morning's testimony demonstrated the urgent need for lawsuit abuse reform in Texas, as witness after witness called attention to a system that leads victims into a ‘web of exploitation' and raises prices for all Texans," said Zelt. "We applaud those that came forward to advocate for reforming a system that is currently costing the average family in Texas $4600 every year."
According to a study from the U.S. Chamber Institute for Legal Reform, Texas ranks among the top five states for nuclear verdicts, with 130 personal injury and wrongful death cases resulting in $16 billion in awards from 2013 to 2022. The study highlighted the role of "anchoring" tactics—where attorneys suggest arbitrary, high-dollar damage amounts—in inflating jury awards. In one case, a plaintiff’s attorney proposed a symbolic per-mile damage figure, leading to a $39 million verdict in an auto accident case. The Texas Supreme Court later overturned the award, citing improper tactics. The study indicated that such excessive verdicts drive up insurance premiums and consumer costs while undermining fairness in the legal system.
A new report from the American Tort Reform Association (ATRA) reveals that Texas is a major hub for legal services advertising, with Dallas and Houston both ranking in the top ten U.S. media markets for total spending on these ads in 2024. Dallas saw approximately $69.8 million spent on 622,212 ads, while Houston accounted for over $56.6 million in spending on more than 411,000 ads. These figures reflect a broader national surge in trial lawyer advertising, which reached $2.5 billion across the U.S. last year—more than double what pizza restaurants spent.
The American Property Casualty Insurance Association (APCIA) and Munich Re US released a survey indicating that most Americans believe certain plaintiff lawyer tactics contribute to rising insurance and consumer goods costs. The Harris Poll conducted among over 2,000 U.S. adults revealed that 69% think third-party litigation funding (TPLF) and jury anchoring increase insurance costs, while 66% say these practices raise prices of everyday items. Additionally, 77% agree that allowing foreign investors to participate in TPLF could pose a national security threat.
Lauren A. Zelt is identified as a public affairs strategist with over 15 years of experience in media, politics, and communications.