Third-Party Litigation Funding Fueling Nuclear Verdicts

Third-Party Litigation Funding Fueling Nuclear Verdicts

Third-party litigation funding, or TPLF, is drawing increased focus from business groups that say the practice is spreading into workplace injury claims and could result in more suits filed, drive up settlement demands, prolong cases, and contribute to rising insurance premiums.

TPLF allows plaintiffs to receive money from outside investors — such as hedge funds or specialized lenders — in exchange for a share of any settlement or court award. Unlike traditional loans, the funding is typically nonrecourse, meaning repayment is owed only if the case succeeds.

Once concentrated in commercial disputes and class actions, TPLF has expanded into personal injury litigation. Investors, private equity firms, and specialized funding companies now back cases they believe will generate strong returns, often covering legal fees, expert costs, and other litigation expenses.

Supporters say TPLF helps plaintiffs pursue valid claims and avoid accepting low early settlements simply because they need cash. Because repayment is not required if the case is lost, the arrangement can reduce financial risk for injured plaintiffs during long litigation.

Critics argue that TPLF drives up tort costs and contributes to “nuclear verdicts” by reducing financial risk for well-funded plaintiffs’ lawyers and encourages more aggressive, speculative litigation. They also warn that plaintiffs may ultimately recover only a small share of any settlement after funders and law firms take their portions, since litigation funders are typically paid off the top.

Critics also note that many states do not have laws requiring plaintiffs to disclose if their case is being funded by a third party.

Texas currently does not require disclosure when TPLF is used. A state Senate bill that would have required disclosure of TPLF financial arrangements died in committee in 2025.

TAN is planning to revisit this issue during the 2027 state legislative session.

Final List of Most Frequent Safety Violations for 2025 Released

The U.S. Occupational Safety and Health Administration (OSHA) has released final data on the agency’s 10 most frequently cited standards for fiscal year 2025, showing one change from the preliminary data released in September. According to final data, scaffolding violations climbed one spot to No. 6, trading places with training requirements for fall protection.

Violations concerning general requirements for fall protection remained the most often cited safety violation in 2025 for the 15th successive fiscal year. The rest of the top 10 in order:

  • Fall Protection General Requirements
  • Hazard Communication
  • Ladders
  • Lockout/Tagout
  • Respiratory Protection
  • Scaffolding
  • Fall Protection – Training Requirements
  • Powered Industrial Trucks
  • Personal Protective and Lifesaving Equipment – Eye and Face Protection
  • Machine Guarding

These findings underscore a broader safety reality: The hazards most frequently cited by OSHA continue to align closely with the injuries employers face most often on the job.

A recent USA Business Insurance analysis of workplace injury data found that musculoskeletal injuries and falls remain among the most common job-related injuries. Citing U.S. Bureau of Labor Statistics figures, the report said sprains, strains and tears led to 568,150 days-away-from-work (DART) cases during 2023-24, the most recent period for which data are available.

Transportation incidents were the leading cause of fatal work injuries in 2024, causing 1,937 deaths. Falls, slips and trips caused 844 deaths, followed by contact incidents at 756, violent acts at 733, and harmful exposures at 687.

The mix also varies by industry. Retail posted 339,800 nonfatal injuries in 2024, while construction recorded 1,034 fatal injuries, including 389 from falls. Transportation and warehousing had the highest nonfatal injury rate among major sectors and recorded 865 deaths. Healthcare and social assistance logged the largest number of nonfatal injuries overall, at 553,800.

More information is available here.

Report Says Workplace Injuries Declining, But More Complex

A new report finds workplace injury rates are declining; however, injuries that do occur are becoming more complex and taking longer to heal.

The Travelers Companies, a leading workers’ compensation insurer, analyzed more than 1.2 million workers’ compensation claims it received between 2021 and 2025 to compile its 2026 Injury Impact Report. The report says an aging workforce and the disproportionate vulnerability of first-year employees are primary factors behind the complex injuries.

According to the report, injuries involving employees 60 and older are more severe, with higher rates of fractures and dislocations, which typically require longer recovery times. These injuries account for 16% of all lost-time claims. When injured, these employees miss approximately 97 days of work — 17 more than the overall average of 80 days — and represent 16% of all lost-time claims.

The report finds first-year employees account for about 37% of all injuries and 34% of overall claim costs. New employees represent an outsized share of injuries in restaurants (51%), small businesses (46%), and construction (44%).

Lost workdays were highest in the construction industry, with an average of 114 lost days per injury claim. That was followed by transportation (94 days), professional services (77 days), and manufacturing (76 days).

Injuries with the highest number of lost workdays per claim were dislocations (139 days), inflammation (100 days), strains and sprains (64 days), contusions (39 days), and lacerations (36 days).

For claims costing more than $250,000, slips, trips and falls were among the leading causes of workplace injuries across every industry segment analyzed, according to the report.

Additional findings are available here.

NCCI: Workers’ Compensation System Remains Strong

The workers’ compensation system remains financially strong, according to metrics recently released by the National Council on Compensation Insurance (NCCI).

Workers’ compensation net written premium declined 0.2% in 2025, according to NCCI. Private carriers also recorded their 12th consecutive year of underwriting profitability, posting a calendar year 2025 combined ratio of 91.

Key findings from NCCI’s State of the Line Report include the following:

  • Two main factors contributed to a 0.2% decline in net written premium for workers’ compensation premium in 2025: payroll and rate per unit of payroll, largely reflected in the loss cost. Although payroll grew in the most recent year, loss costs continued to decline.
  • The calendar year 2025 combined ratio of 91% was driven by increases in both the loss ratio and the underwriting expense ratio.
  • The accident year 2025 combined ratio was 102%, while prior accident years continued to experience favorable reserve development.
  • NCCI estimates the industry’s reserve position to be redundant by $14 billion. This is down from the $16 billion redundancy estimated in 2024 and represents the second consecutive year of a slight decline in estimated redundancy.
  • Lost-time claim frequency fell 2% in 2025, a slower pace of decline than the long-term average.
  • Claim severity increased in 2025, with both medical and indemnity claim severity rising 4%.

The State of the Line Report is available here.

Employers Weigh Costs of GLP-1 Drugs

While almost 80% of employers cover GLP-1 drugs for diabetes, a new survey shows employers are considering dropping the coverage for weight management-only users.

The survey from the nonprofit Business Group on Health found 67% of surveyed employers currently cover GLP-1s for weight management, but only 72% of those employers said they were likely to continue that coverage in 2027. Companies that do not cover GLP-1s for weight management today are unlikely to add coverage in the future, according to the survey.

The survey found that employers who cover GLP-1s for weight management use various strategies to ensure the treatment is appropriate. These strategies include using objective biometric data to validate eligibility, mandatory participation in a weight management program, and limiting prescribing to specific providers.

GLP-1s, known by brand names such as Ozempic, Wegovy, Mounjaro or Zepbound, help regulate blood sugar in people with type 2 diabetes. They can also lead to substantial weight loss for people with obesity and have shown promise in helping manage conditions such as cardiovascular disease, obstructive sleep apnea, and substance use disorder.

Other findings from the survey include:

  • Although more than half of employers that cover GLP-1s for weight management expect the medications to yield significant clinical benefits, few have yet seen evidence of those benefits (such as a reduction in obesity rates and fewer employees needing bariatric surgery) within their aggregated claims.
  • Almost nine in 10 employers (87%) believe the availability of an oral GLP-1 medication will create higher demand for the drugs, but just 9% of employers anticipate a decrease in price.

Information for downloading the survey is available here.

Workers Respond to Safer Workplaces

More than nine out of 10 workers say a safer workplace makes them more productive, according to a new survey.

EcoOnline’s recently released annual Workplace Safety Report also shows 77% of workers surveyed say workplace safety affects their choice of employer, and 78% said they would consider leaving a position due to unsafe conditions.

However, 47% say they or someone close to them has experienced a workplace incident or illness. In addition to traditional physical hazards, surveyed workers say other factors affect productivity and workers’ willingness to stay in role:

  • Stress contributed to 56% of workplace accidents and illnesses.
  • Confidence among lone workers in their employer’s responsibility declined year over year, dropping from 69% to 62%, while 33% reported experiencing an accident when working alone in 2025.
  • Severe and extreme weather events were identified as a major crisis-management risk for businesses (26%) and the leading concern among lone workers (42%).
  • Daily chemical exposure was reported as a concern by 53% of workers, rising from 44% in 2025.
  • Cyberattacks were also named as a leading threat to business operations (26%).
  • Some 73% of workers say digital tools could improve workplace safety, up from 70% in 2025.
  • Almost half (47%) believe AI could play a positive role.

Respondents’ top asks for safety investment were more staff training (36%) and a larger workforce dedicated to safety (38%).

Information for downloading the survey is available here.

Lawsuits Seeking Accommodations for Disabled Workers Increasing

Lawsuits alleging employer failure to provide reasonable accommodation to disabled workers have risen sharply and take longer to reach court, according to a new report. Similarly, federal lawsuits alleging discrimination against a protected class exceeded 20,000 cases in 2025, the first time that has happened in the report’s tracking period.

The report from Lex Machina, the LexisNexis Legal Analytics platform, indicates plaintiffs filed 6,796 disability accommodation cases in 2025, almost 42% more than in 2024.

Lex Machina analyzed data from 2016 through 2025 for its 2026 Employment Litigation Report. In addition to the volume of claims filed, the report finds there can be a lengthy wait for accommodation claims to reach trial. The report concludes that the median time for an accommodation claim to reach trial was 1,021 days during the 2023-25 period.

It cites long-term health issues associated with COVID-19 and several recent high-damage awards in disability accommodation cases as possible reasons for the increase in lawsuits.

The report also finds an increase in the percentage of federal employment cases brought by pro se plaintiffs, or those representing themselves. More than 16% of employment lawsuits filed in 2025 were filed pro se, compared to 10% in 2021. From 2023 through 2025, pro se employment plaintiffs lost at a ratio exceeding 40 to 1 in cases decided on the merits.

Information for downloading the report is available here.

U.S. Labor Force Projected to Shrink

The U.S. labor force is quietly shrinking and is expected to comprise about 4.3 million fewer workers by 2034, according to projections from the U.S. Bureau of Labor Statistics (BLS).

BLS projects a decline in the overall Labor Force Participation Rate (LFPR) to 61.1% by 2034, a 1.5% percentage point drop from 62.6% in 2024.

Research from Indeed Hiring Lab, the economic research arm of Indeed, says the shrinking is the result of an aging population combined with fewer workers entering the workforce.

BLS factors in estimates of the future size and composition of the population when making its projections. The labor force participation rate (LFPR) measures the share of people ages 16 and older, excluding those who are institutionalized or serving in the military, who are either working or actively seeking work. Under BLS definitions, people who are not working and have not actively looked for a job in the previous four weeks are classified as not in the labor force.

According to Indeed Hiring Lab, the number of 16- to 24-year-olds is projected to decline by 6% over the next decade, while the number of young people participating in the labor force is expected to fall by 10%.

Trends are expected to remain stable over the next decade for both the population and the LFPR among workers aged 25 to 54. The total population for this group is projected to increase 6% while the LFPR increases 5%.

The largest population increase during the next decade is projected for adults ages 55 and older. This group is expected to increase by 10% by 2034, although the LFPR is expected to increase 5%.

More information is available here.

Study Identifies Best States for Seniors to Work

Texas is ranked 13th in a list of best states for seniors to work, according to a new report that analyzed labor force participation, income, age discrimination rates, remote work flexibility, income taxes, and new business growth to determine the best states for senior workers.

The report was prepared by CareScout, a private industry firm that helps seniors plan for long-term care expenses and build wellness programs to help maintain independence in their own homes.

CareScout analyzed the most recent data from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, the U.S. Equal Employment Opportunity Commission, and the nonprofit Tax Foundation. Among its key findings:

According to the report, a record 11.6 million seniors are in the U.S. workforce, a 132% increase from 2004. Projections call for the number of seniors in the workforce to reach 14.6 million by 2034.

The report names New Hampshire the top state for older workers, citing the state’s 0% income tax rate, second-best labor participation rate among seniors (36.1%), third-fewest incidents of age discrimination (18 complaints per 100,000 older workers), and 11th highest median income for senior households ($67,530).

Texas also has no state income tax. According to the report, Texas has a 32.6% labor participation rate among seniors (10th best in the country), but ranks 40th in incidents of age discrimination at 40 complaints per 100,000 older workers. The median income for senior workers in Texas is $58,739, good for 27th place in the nation.

The report ranks Mississippi last for senior workers, citing the nation’s lowest median income among older households ($44,031), third-highest age discrimination rates (188 complaints per 100,000), and third-fewest seniors working remotely (8.5%).

More information about the report is available here.

Survey Highlights Lack of Honest Feedback in Workplace

Almost half (46%) of executives feel there’s a lack of honest feedback across the company and blame it on a lack of accountability and management skills. Meanwhile, employees say they don’t give honest feedback because they fear retaliation, with 45% of employees surveyed saying they don’t feel safe at work, citing psychological safety and trust as their top workplace concern.

Those are the key findings from Radical Candor’s newly released report “The Trust Gap: State of the Workplace Feedback & Culture 2026,” based on a survey of 600 workers across the United States.

The survey reveals that business executives underestimate how many employees stay silent when asked for feedback. The survey finds 48% of executives say they have observed workers staying silent when there are issues; however, that number jumps significantly to the levels of silence that employees (61%), managers (63%), and HR teams (67%) say they observe.

According to the survey, only 24% of HR teams have observed feedback that is both direct and respectful in the workplace. Some 51% of HR workers report that manager capability and confidence is their top workplace concern, and 54% of employees say they rarely or never get feedback from their managers.

The survey finds 71% of those in managerial roles today were never given the opportunity to practice giving or receiving feedback before becoming managers. Meanwhile, 48% of managers surveyed cite burnout as their top concern and say they are exhausted, unclear on priorities, and losing trust in leadership.

Information for downloading is available here.

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