Founder of IBC Group on tort system: Tort 'costs are growing faster than inflation—7.1% a year'

Mario Nawfal, Founder of IBC Group, said that the U.S. tort system costs households $4,200 annually and is projected to approach $1 trillion by 2030. This statement was made on X.

"AMERICA'S LAWSUITS COST $529 BILLION—AND GUESS WHO'S PAYING," said Nawfal. "That's over $4,200 per household just to keep the tort system running. These costs are growing faster than inflation—7.1% a year. If that keeps up, we'll be flirting with $1 TRILLION by 2030."

U.S. tort reform debates have intensified as lawmakers and business groups argue that rising litigation costs burden households, while trial lawyers warn reforms could limit accountability. According to Reuters, mass-tort filings like product liability cases have surged in recent years, prompting several states in 2025 to consider new laws aimed at reducing lawsuit costs. The central question is whether reforms lower insurance premiums and consumer prices or instead weaken protections for injured parties.

Tort system costs in the United States totaled $529 billion in 2022, equal to 2.1 percent of GDP and $4,207 per household. According to a 2024 report from the U.S. Chamber Institute for Legal Reform prepared by The Brattle Group, these figures include litigation expenses and compensation across categories like auto, medical, and commercial liability. Reform advocates cite these numbers to argue that lawsuit costs create a hidden tax on American families.

Between 2016 and 2022, U.S. tort costs grew an average of 7.1 percent annually, surpassing GDP growth of 5.4 percent and inflation of 3.4 percent. The same report indicates states show wide variation, with Florida’s tort costs at 3.35 percent of GDP compared to just 1.28 percent in North Dakota. These disparities highlight why some states push aggressive reform while others face lower relative burdens.

Mario Nawfal is a Lebanese-Australian entrepreneur and investor best known as the founder of IBC Group and co-founder of NFT Technologies. He launched his first company Froothie in 2013, started IBC Group in 2017 to support blockchain ventures, and later gained prominence hosting large-scale X/Twitter audio spaces on global business and crypto topics. Nawfal studied banking and finance at Monash University in Melbourne.

IBC Group is a Dubai-based Web3 consulting and incubation firm founded by Nawfal with a mission to accelerate blockchain and crypto projects through marketing, partnerships, and global media reach. The group works with founders and startups across the Web3 ecosystem to scale adoption and growth internationally.