David Williams, president of the Taxpayers Protection Alliance (TPA), expressed concerns about mass tort litigation in the United States. He argued that it harms U.S. prosperity by draining resources from businesses and encouraging frivolous lawsuits. Williams made these remarks in a January 3 op-ed.
"MDLs make up 65 percent of the federal civil caseload," said Williams. "Billions of dollars have been allocated towards legal advertising over just the last few years."
Georgia has been ranked fourth among Judicial Hellholes, with 64 nuclear verdicts totaling $6 billion in awards from 2013 to 2022. A significant case involved a $1.7 billion punitive damages verdict against Ford in 2022, which was later overturned by the Georgia Court of Appeals. According to Judicial Hellholes, these verdicts result from practices like anchoring and awarding phantom damages, contributing to Georgia’s high ranking.
The Institute for Legal Reform explains that third-party litigation funding (TPLF) involves external financiers providing capital to plaintiffs or their attorneys in exchange for a portion of any settlement or judgment. This practice has raised concerns about its potential to prolong litigation, discourage settlements, and introduce conflicts of interest into the legal process. Critics argue that TPLF prioritizes investor returns over the fair and efficient resolution of disputes, potentially undermining the integrity of the legal system.
TPLF has grown into an $18.2 billion global industry, with 52% of funding allocated in the U.S., contributing to social inflation and rising jury awards. From 2019 to 2021, personal injury cases funded by TPLF saw profits ranging from 25% to 35%, while mass-tort lawsuits returned between 20% and 25%, far exceeding the S&P 500’s average return of 10%. According to CRC Group, plaintiffs using TPLF receive an average of only 43% of the awards compared to 55% without it.
Insurify reports that Georgia drivers pay an average of $2,688 annually for full-coverage car insurance, which is 15% higher than the national average. In 2023, Georgia reported 28,171 vehicle thefts—the ninth-highest in the nation—contributing to insurance rate calculations. Despite House Bill 221's implementation on July 1, requiring a 60-day review of rate filings, full-coverage costs in Georgia rose by 21% between June 2023 and June 2024.
According to its website, David Williams has over three decades of experience in Washington D.C., specializing in identifying and exposing government waste. He has appeared on major media outlets such as ABC World News Tonight and The New York Times and has advised taxpayer groups globally.