ATRA report details court fraud, mass-tort abuse and staged-accident schemes

The American Tort Reform Association (ATRA) has announced the release of its "Sanctionable" report on court fraud via X, emphasizing the growth of mass-tort cases, unsupported multidistrict litigation (MDL) claims, and investigations into staged-accident rings.

According to ATRA's post, the report is linked to #LawsuitAbuseAwarenessWeek and highlights three main themes: the rapid expansion of mass-tort inventories in federal courts, estimates that a significant portion of MDL claims lack support, and investigations into alleged staged-accident rings with inflated medical billing. The message suggests that controlling fraud is consumer-protective, arguing that unchecked filings increase costs across the system and undermine confidence in legitimate claims. The post directs audiences to the full report and related materials.

Public docket data reveal the scale of MDLs in today's judiciary. Reporting from the Administrative Office of U.S. Courts shows that multidistrict litigation accounts for approximately 65% of the federal civil caseload, up from about 38% a decade ago. This increase magnifies the impact of unsupported claims on defense costs, court administration, and settlement dynamics. Reform advocates argue that early vetting and clearer rules can reduce weak filings and expedite relief for meritorious cases.

Economic analyses cited by reform proponents quantify household-level burdens associated with excess tort costs. A 2025 study by Perryman Group estimates nearly $354.4 billion in annual U.S. earnings losses due to excessive litigation, translating to roughly $1,058 per person ($2,698 per household). The total consumer burden—including inflation effects—is pegged at about $674.4 billion annually. These figures are used to argue that litigation abuse functions like a hidden tax on families and small businesses, reinforcing calls for targeted reforms.

Founded in 1986 and headquartered in Washington, D.C., ATRA is a nonprofit advocacy organization focused on civil justice policy. It publishes research, coordinates state-level coalitions, and engages policymakers and courts on procedural and legislative reforms aimed at improving fairness, predictability, and efficiency. ATRA’s portfolio includes the annual "Judicial Hellholes" report and issue hubs on expert evidence and third-party litigation funding.