The American Tort Reform Association led a coalition this week urging Gov. Abigail Spanberger (D) to stop legislation that would open the door to costly class action lawsuits and drive up prices for consumers.
“These bills invite expensive and unnecessary litigation that will impact small business and drive up costs for Virginia families,” said Tiger Joyce, president of ATRA. “Gov. Spanberger has a key opportunity to protect Virginia’s reputation as a fair and affordable place to live, work and raise a family.”
Senate Bill 229, introduced by Democratic Senate Majority Leader and practicing trial attorney, Scott A. Surovell, and House Bill 449, introduced by Democratic Del. Marcus B. Simon, would authorize class action lawsuits in Virginia for the first time. Advocates warn the change could radically transform the Commonwealth’s legal climate.
“Virginia long has had a fair, balanced legal climate,” said Brett Vassey, president and CEO of the Virginia Manufacturers Association, which joined ATRA in submitting the veto request. “If enacted, this law will open the door to frivolous class actions that will clog our courts and make Virginia less competitive for future investments.”
Virginians pay $1,849 annually in a “tort tax” and 135,840 jobs are lost annually due to excessive tort costs in the state. The group’s letter urging a veto notes that business leaders expect to see more legislation likely to raise costs on Virginia businesses and taxpayers while benefiting few outside of the plaintiffs’ bar in the coming years.
“The impacts of lawsuit abuse are real, and at a time when leaders are focused on affordability for working families, these bills will only line the pockets of trial lawyers while consumers get pennies on the dollar,” Joyce said. “Without basic safeguards, taxpayers will shoulder the costs of meritless lawsuits.”
The group outlined several concerns with the bills, including the right to an interlocutory appeal of a class certification order, which 17 other states provide. They also note that the bill’s allowance for statutory damages is unnecessary in class actions and will expose businesses of all sizes to liability that is vastly disproportionate to any actual harm, resulting in excessive awards.
For example, if a lawsuit was brought on behalf of 500,000 consumers who purchased a product or service, the business would be exposed to $250 million in liability even if (1) no consumer relied on the allegedly misleading advertisement or practice; (2) no consumer experienced an actual financial loss; and (3) the business did not intend to mislead consumers.
ATRA’s 2025 Legislative HeatCheck named the Virginia General Assembly a “Lawsuit Inferno” after it advanced bills to expand civil liability and encourage more lawsuits last year.
The full letter requesting Gov. Spanberger’s veto of S.B. 229 and H.B. 449, additionally signed by the American Property Casualty Insurance Association, the American Trucking Association, Independent Insurance Agents of Virginia, the National Association of Mutual Insurance Companies, National Federation of Independent Business, and the U.S. Chamber of Commerce Institute for Legal Reform, is available at ATRA.org.
