"In 2002 and 2003, published reports detailed how a Beverly Hills law firm had filed thousands of lawsuits against small businesses often run by minorities with poor language skills. The suits alleged violations of obscure state regulations. Given the option of settling the suits for thousands of dollars, many business owners made the payoffs rather than risk going to court. Then-Attorney General Bill Lockyer and others likened the practice to extortion and pushed for reform legislation.
But in a testament to trial lawyers’ clout in Sacramento, “reform” legislation advanced that actually would have made it easier to pursue shakedown lawsuits. It took a 2004 ballot initiative to limit the ripoffs."
But in a testament to trial lawyers’ clout in Sacramento, “reform” legislation advanced that actually would have made it easier to pursue shakedown lawsuits. It took a 2004 ballot initiative to limit the ripoffs."