A report from The Perryman Group found that excessive tort costs in Georgia result in an annual loss of $810 million, significantly impacting the state's fiscal health and economy. The findings were published on November 25, 2024.
According to the report, Georgia’s excessive tort costs contribute to $2.9 billion in federal revenue losses and $674 million in local government losses annually. The transportation and warehousing sector alone faces $7.2 billion in expenditures, $4.6 billion in lost gross product, $3 billion in reduced personal income, and 33,800 job losses each year.
Judicial Hellholes states that third-party litigation funding (TPLF) in Georgia has led to an increase in excessive lawsuits and nuclear verdicts, allowing funders to charge high rates without oversight. This unchecked growth burdens industries like transportation and automotive with high insurance premiums and inflated litigation costs, ultimately straining businesses and consumers while enriching funders at the expense of justice and economic stability.
Attorney advertising has surged, with plaintiff lawyers spending approximately $6.8 billion on ads between 2017 and 2021, resulting in 77 million national and local ads. Munich RE reports that this increase in advertising correlates with the growth of TPLF as more advertised claims attract investors seeking a share of potential settlements.
The Perryman Group's website describes it as an economic research firm based in Waco, Texas, with over 40 years of experience. The firm has served more than 3,000 clients, including global corporations and U.S. Cabinet departments, and completed over 1,000 public policy studies.