Legal system abuse costs the U.S. economy and consumers an estimated $500 billion a year to defend against frivolous lawsuits.

That’s approximately 2 percent of the country’s GDP.

Tort costs have exploded in recent years at an annual rate of 7.1%, more than twice the inflation rate.

In the 1990s, Republicans KOed the trial lawyer sharks, but they’re back big time and now have even courted Republicans to do their bidding.

A big problem is the new scam called “THIRD-PARTY LITIGATION FUNDING” for lawsuits.

Here’s how it works:

Outside investors secretly bankroll lawsuits for profit. The investors, not the injured party, walk away with the bulk of the jackpot awards.

These lawsuit investment funds are growing rapidly and reached $2.3 billion in new financing agreements for 2024 and the total assets have grown to $16.1 billion.

These funds should be illegal – or at least transparent so defendants and the public know who the real economic interest suing is.

Our friend Rep. Darrell Isa has sponsored the Litigation Transparency Act of 2025, which would require disclosure of these agreements in federal civil cases.

Some conservative groups are worried this means they would have to disclose their donors.  Issa tells us that is absolutely not the case – donors don’t receive compensation – and he is going to add more language to make this crystal clear.

We wrote last week that Florida, under Governor Ron DeSantis, has dramatically lowered insurance costs in his state in part due to curtailing frivolous lawsuits. The rest of the country should do the same.