A fair justice system serves everyone.

America’s civil justice system protects rights, compensates legitimately injured people, resolves disputes, and holds wrongdoers accountable. But when litigation becomes driven by financial incentives rather than legitimate claims, the consequences extend far beyond the courtroom.

EVIDENCE. TRANSPARENCY. ACCOUNTABILITY.

$

4,200+

*

The annual cost per U.S. household

That is what America’s lawsuit system costs the average household in a single year.

You never got an invoice. You paid it anyway: at the register, at the pharmacy, on your premium, and in a raise that never came.

The cost of litigation has become a hidden tax on American families and businesses. In 2022, the U.S. tort system consumed an estimated 2.1% of the nation’s gross domestic product. A fair civil justice system is essential to protecting the rights of genuinely injured people and holding wrongdoers accountable. But when litigation is driven by attorney and investor profits, rather than legitimate claims, the costs extend far beyond the courtroom.

End Lawsuit Abuse exposes the forces driving abusive, profit-driven litigation and works to bring greater transparency and accountability to our civil justice system.

CONTACT US

*$529 billion in total U.S. tort costs for 2022, more than $4,200 per household, and 2.1% of GDP. National tort costs grew at an average annual rate of 7.1%, compared with 3.4% inflation and 5.4% GDP growth. Analysis by The Brattle Group for the U.S. Chamber Institute for Legal Reform, Tort Costs in America, Third Edition, November 2024.

What if one of America’s most powerful criminal enterprises didn’t operate from the shadows—but from prestigious offices, with bar licenses hanging on the walls?

Most lawyers do this work honestly. This is about the ones who do not.

Decades of research, court records, and investigative reporting have documented practices that can transform litigation from a search for justice into a business model built around maximizing attorney profit.

The methods take different forms. Claimants may be recruited through misleading or deceptive advertising. Experts may be retained and paid to develop litigation-driven “science” that cannot withstand rigorous, independent scientific scrutiny. Yet once such science is admitted in court, it can provide the foundation for thousands of claims and enormous settlement pressure—even when the underlying scientific conclusions remain disputed or unproven.

Witnesses may be coached or pressured to provide testimony that is false, exaggerated, or shaped to fit a claim. Lawsuits may be filed in such volume that the economics themselves become a weapon: defendants face pressure to settle not because the claims have been proven, but because the cost of defending thousands of individual cases can exceed the cost of making them go away.

When these practices occur, the economics of litigation can overwhelm the search for truth. Volume becomes leverage. Questionable science becomes the foundation for claims. And the cost of defending a lawsuit can become more important than whether the lawsuit is actually supported by the facts.

These are not merely stories about individual lawyers behaving badly. They expose a larger and more systemic problem: financial incentives can reward abusive litigation, while the institutions responsible for identifying and policing misconduct may fail to stop it. The consequences extend far beyond defendants. Consumers, workers, businesses, and legitimately injured plaintiffs can all bear the costs when the civil justice system rewards volume and financial leverage rather than truth and merit.

FOLLOW THE MONEY

Who finances the lawsuit? Who profits from the outcome?

Third-party litigation funding

Outside investors finance litigation in exchange for a share of a settlement or judgment. Despite its growing role, third-party litigation funding remains largely unregulated in the United States. GAO has reported that there is no comprehensive federal framework governing the industry and that limited disclosure makes it difficult to determine the size of the market, who finances particular lawsuits, and the extent of funder involvement. [4]

Who is financing the lawsuit?
Who stands to profit?
Does the funder influence litigation or settlement decisions?

Non-lawyer ownership of law firms

Outside investment can go beyond financing a case by creating an economic interest in the law firm itself. ABA Model Rule 5.4 generally restricts non-lawyer fee sharing and ownership, while Arizona permits licensed Alternative Business Structures under a regulatory framework. [5][6]

Who ultimately owns the law firm?
Who is entitled to its profits?
Can investment-return demands influence client or settlement decisions?

References: (4) Third-Party Litigation Financing: Market Characteristics, Data, and Trends Government Accounting Office-23-105210
Published: Dec 20, 2022. Publicly Released: Jan 19, 2023. https://www.gao.gov/products/gao-23-105210

RECRUITMENT AT SCALE

Finding the next claimant.

Legal advertising can connect injured people with attorneys. But mass recruitment can also create incentives to generate large inventories of claims before individual merits have been thoroughly investigated.

When thousands of claims are assembled, the size of the inventory itself can create settlement leverage.

Industry estimates place spending on legal-services advertising in measured channels at approximately $2.64 billion in 2024, roughly 40% above 2020 levels. [7]