NAAG’s Nagging Concerns Are Contributing to a Crisis in the U.S. Justice System
A significant crisis is engulfing America’s attorneys general.
The National Association of Attorneys General (NAAG) — the self-anointed voice of the state and territorial prosecutors in the United States — is facing a reckoning after years of questionable management decisions have turned it into a leading manufacturer of lawsuit abuse.
This week as NAAG holds its annual meeting in Washington, DC, it’s imperative to highlight the motivations of this group. Driven by its increased role in multi-state, mass tort litigation funding, NAAG is fueling the type of entrepreneurial litigation that negatively impacts everyday Americans.
These meetings often include plaintiffs’ lawyers presenting on “best practices” and promoting coordination between state AGs on mass tort litigation.
However, NAAG’s founding mission wasn’t litigation-advocacy — and it needs a serious course correction if it’s going to return to its original purpose. Our organization, the American Tort Reform Association (ATRA) does a significant amount of work researching the factors driving lawsuit abuse in the civil justice system. In our Foundation’s annual Judicial Hellholes® report, we highlight separate drivers of mass tort litigation and how NAAG plays a role just like other third-party litigation funders.
Interestingly, NAAG is now one of the driving financers of litigation brought by attorneys general across the country.
Under its current operations, NAAG helps organize its members — which include state attorneys general — into coalitions that bring massive tort litigation against perceived deep-pocketed corporations — cases that the various attorneys general contract out to well-connected trial attorneys. Most recently, NAAG has turned its attention to opioid and climate change litigation using its resources to encourage litigation across a multitude of states. As an organization, NAAG fully participates in settlements reached in multi-state lawsuits. Once victorious, settlements are dispersed between the attorneys and NAAG, with little, if any, return for the victims they purported to help in the individual states.
It’s no wonder that an organization with an annual budget of around $5 million has accumulated a war chest of more than $280 million in assets. If that number seems extraordinarily high to you, you’re not alone.
Some NAAG members are also alarmed by the organization’s bank account depth.
In a recent letter to NAAG’s leadership, 12 current state attorneys general stated they could not understand how NAAG’s mission justified the organization holding more than $280 million in assets from successful litigation that they believe should be returned to the states for disbursement to victims.
NAAG’s former executive director inadvertently answered the question of “why” the organization is holding money in their coffers when describing the group’s funding priorities. He listed training staff in state AG offices to identify and pursue future mass-tort litigation and hoard a massive war chest to fund those lawsuits whenever they arise. Clearly, the organization has devolved into a lawsuit factory, seeking ever-grander settlements to perpetuate the cycle and keep the litigation machine running at full speed.
But the question to ask now is whether there is any benefit for the public from the NAAG lawsuit machine?
While attorneys and NAAG leadership may enjoy the financial benefits from their never-ending lawsuit operation, the public is left with raised prices for goods, services, and insurance. Sadly, the comments by organization leaders defending their operations demonstrate that they have become completely disconnected from the consequences of their actions.
Instead of focusing on ways to churn the third-party litigation funding machine, NAAG should focus its efforts during this meeting on realigning its priorities. That is, if NAAG wishes to restore its original mission of being a credible, non-partisan organization.
America needs a civil justice system that provides a fair trial for both plaintiffs and defendants. But that won’t happen so long as organizations like NAAG are funding system-abusing practices. Hopefully, NAAG members will continue to speak out and push for serious change for this once noble organization.
