David Williams, the president of the non-profit government watchdog group Taxpayers Protection Alliance (TPA), has expressed concern over the economic impact of mass tort lawsuits. In an opinion piece for the Washington Examiner, Williams stated that these lawsuits result in higher prices for goods as corporations face increased liability costs.
"All of this comes at a huge economic cost, which is borne by the public at large in the form of inflated prices," Williams said. "Industries that supply consumers with products in diverse fields including medicine, automotive manufacturing, and agriculture are forced to build potential liability damages into the cost of their goods. They know that even frivolous litigation will involve expensive attorney’s fees and can result in expensive settlements. Annual tort costs are estimated to be nearly $500 billion, equivalent to more than 2% of U.S. GDP."
He further elaborated on how various industries such as medicine, automotive manufacturing, and agriculture are compelled to incorporate potential liability damages into their product costs. "Industries that supply consumers with products in diverse fields including medicine, automotive manufacturing, and agriculture are forced to build potential liability damages into the cost of their goods," he said. According to Williams, even seemingly baseless litigation can lead to hefty attorney’s fees and expensive settlements. "They know that even frivolous litigation will involve expensive attorney’s fees and can result in expensive settlements," he explained. The TPA president also provided a staggering figure: "Annual tort costs are estimated to be nearly $500 billion, equivalent to more than 2% of U.S. GDP."
In his article, Williams pointed out that mass tort litigation has seen a surge in popularity due to investments from third parties. These third parties provide the necessary capital for attorneys to advertise cases on television and social media platforms in order to attract more potential plaintiffs and cover initial litigation costs. He criticized current regulations for allowing these investors to remain anonymous and noted that typically, they, along with attorneys, end up with a larger share of settlement funds than plaintiffs.
The American Tort Reform Association (ATRA) echoed similar concerns in an October report published on its website. It stated that third-party litigation financing has evolved into a multi-billion-dollar industry involving hedge funds and private equity firms. ATRA highlighted that between 2017 and 2021, legal advertising campaigns, often funded by third parties, received a staggering $6.8 billion. The association also pointed out that many claims underpinning mass tort litigation are backed by "unsubstantiated scientific evidence" and "unscrupulous experts."
Williams has dedicated three decades to exposing government waste in Washington, D.C., as per the TPA website. His efforts have taken him to South Korea and France, where he participated in government waste panels, and he has also advised taxpayer groups globally. His work has been featured in The New York Times and on numerous radio and television outlets.