David Williams, president of the Taxpayers Protection Alliance (TPA), expressed concerns about third-party funders in litigation. He said that these funders often prioritize profits over justice, ultimately impacting the economy negatively. Williams made this statement in a January 3 op-ed.
"Third-party litigation funding (TPLF) has grown in just a few years into a multi-billion industry of its own," said Williams. "Consolidating cases under MDLs and mass torts to reduce profit-driven funders clogging the courts."
According to DC Journal, mass tort litigation and multidistrict litigation (MDL) currently constitute 65% of the federal civil caseload, an increase from 38% a decade ago. Third-party litigation funding (TPLF) has become a multi-billion-dollar industry influencing the mass tort landscape. A study estimates that mass torts and MDLs lead to annual losses of $77.4 billion in federal revenue, $24.3 billion in state revenue, and $20.5 billion in local government revenue.
A report by the National Association of Mutual Insurance Companies (NAMIC) indicates that third-party litigation funding and legal system abuse are increasing insurance costs by raising the volume of lawsuits, compelling businesses to elevate prices. These increased costs are eventually transferred to consumers.
Nevada drivers have faced a 20% rise in full-coverage premiums since June 2023, partly due to the state's vehicle theft rate, which was the third-highest nationwide in 2023. Rising climate risks, including annual wildfires burning an average of 450,000 acres, are also anticipated to contribute to future rate increases. As of 2024, Nevada’s average annual cost for full coverage is $3,271—40% higher than the U.S. average—according to Insurify.
Williams has over 23 years of experience in government waste and budget policy and has testified before Congress while assisting in establishing similar organizations globally. He holds a master's degree in political science from Villanova University, as reported by HuffPost.