The American Tort Reform Association issued a statement of support for the Staged Accident Fraud Prevention Act, introduced today by U.S. Sen. Ashley Moody (R-Fla.), which would make it a federal crime to engineer a crash with a commercial motor vehicle.
“Staged accident fraud is a brazen form of lawsuit abuse that endangers lives, drains pocketbooks, and rewards the very trial lawyers who orchestrate these schemes,” said Tiger Joyce, president of ATRA. “Senator Moody’s bill gives federal prosecutors the tools to hold every conspirator accountable — from the ‘slammers’ behind the wheel to the billboard lawyers who profit from the courtroom.”
The “fraudemic” is acutely visible in states ATRA long has identified as Judicial Hellholes®. Louisiana and New York, both perennial Judicial Hellholes®, are especially active hot spots for staged accident fraud.
In Louisiana, a sprawling federal investigation, “Operation Sideswipe,” exposed the scope of fraud involving staged accidents with big rigs in the New Orleans area. At least 63 individuals have been charged in the scheme and 49 individuals have been convicted, according to the U.S. Attorney’s Office for the Eastern District of Louisiana.
“When trial lawyers and their co-conspirators engineer crashes to manufacture lawsuits, real people pay — through higher insurance premiums, pricier goods, and a legal system twisted to serve greed instead of justice,” Joyce said. “Senator Moody’s bill is exactly the kind of commonsense reform the civil justice system needs.”
In New York City and across the state, attorneys and healthcare providers exploit the state’s no-fault insurance policies through faked crashes and unnecessary medical procedures. resulted in Democratic Gov. Kathy Hochul pushing for reforms this year to address skyrocketing insurance rates. In 2023, New York had the second-highest number of staged vehicle accidents in the country at 1,729 staged car crashes, according to the state’s Department of Financial Services.
The Senate bill is a companion to House legislation introduced in 2025 by Reps. Mike Collins (R-Ga.) and Brandon Gill (R-Texas). It establishes criminal penalties not only for those who stage collisions, but also for the attorneys, physicians, and other co-conspirators who knowingly participate in the fraud.
Recent data shows that excessive tort costs in the U.S. cost every American $1,771 each year in a “tort tax” and contribute to the loss of more than 5 million jobs annually.
ATRA’s report, “Sanctionable: The unsupported, exaggerated, and suspicious claims plaguing our nation’s courts,” further details the nation’s growing “fraudemic.” ATRA urges the Senate Judiciary Committee to advance the Staged Accident Fraud Prevention Act without delay.
