Regulatory Watch: End to frivolous lawsuits could bolster economy

The U.S. Chamber of Commerce is throwing its weight behind an effort to curtail class-action lawsuits.

The business group has endorsed passage of S. 1712, “The Class Action Fairness Act,” which has bipartisan support. “The rise of frivolous class action cases over the past decade has resulted in higher prices for consumers, lower stock values for investors and an uncertain future for businesses and employees,” said James M. Wootton, president of the Chamber’s Institute for Legal Reform.

“The U.S. economy could use some good news right now, and passage of S. 1712 would be a booster shot benefiting all Americans.” The Chamber said the measure would help curb “venue shopping” in state courts by making it easier for federal courts to hear cases in which at least one plaintiff and one defendant are from different states and the amount in dispute is more than $2 million. It would also prevent a single county court from setting national policy.

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