CONTACT: Jenna Wines
jwines@vamanufacturers.com
FOR IMMEDIATE RELEASE: February 10, 2026
New Report Examines the Economic Impact of Litigation Costs in Virginia
-Economic Impact Report Raises Concerns for Manufacturers-
RICHMOND, VA—A new economic report released by Citizens Against Lawsuit Abuse (CALA) underscores how excessive litigation is making life more expensive for Virginians, eroding the Commonwealth’s business climate, and placing a growing strain on Virginia’s manufacturers at a time when competitiveness matters more than ever.
The 2025 Economic Benefits of Tort Reform report, prepared by The Perryman Group, demonstrates that an unbalanced civil justice system drives up costs throughout the economy—raising prices for consumers, straining household finances, and limiting manufacturers’ ability to grow, invest, and hire.
For Virginia manufacturers, rising legal costs and increased uncertainty translate into fewer resources for expansion, higher operating expenses, and reduced competitiveness in an increasingly challenging national landscape. The report finds that excessive tort costs reduce manufacturing output in the Commonwealth by more than $1.8 billion each year and are responsible for the loss of approximately 11,170 manufacturing jobs annually, weakening supply chains and driving up costs that ultimately reach consumers.
These findings come as Virginia’s overall business environment is already losing ground nationally. After ranking No. 1 in CNBC’s “America’s Top States for Business” in 2024, Virginia fell to No. 4 in 2025. For manufacturers specifically, Virginia dropped from 7th to 9th nationally in the 9th Annual Virginia Manufacturing Competitiveness Index.
Across the broader economy, the report quantifies the scale of the burden that legal system abuse places on Virginia residents. Excessive tort litigation costs act as a hidden “tort tax” of $1,848.82 per person each year, quietly increasing the price of everyday goods and services while suppressing economic growth.
The consumer impacts in Virginia are substantial:
- $32.3 billion in reduced total consumer expenditures
- $16.3 billion in lost economic output
- $10.3 billion in lost personal income
- 135,840 fewer jobs statewide on an annual basis
“These figures embody the economic pressures we are all feeling,” said Brett Vassey, VMA President & CEO. “Manufacturers feel the impact of frivolous, litigation-induced costs first, but consumers ultimately bear the cost. At a time when Virginia is slipping in national competitiveness rankings, a fair and predictable civil justice system is essential to protecting jobs, strengthening manufacturing, and ensuring Virginia remains nationally competitive.”
The 2025 Economic Benefits of Tort Reform report highlights that states that have enacted tort reforms have reduced excess litigation while supporting stronger economic growth, affordability, and long-term competitiveness.
Click to view the 2025 Economic Benefits of Tort Reform report and the Virginia analysis.
About Citizens Against Lawsuit Abuse (CALA)
Citizens Against Lawsuit Abuse (CALA) is a nonpartisan, grassroots movement working to end rampant lawsuit abuse across the United States. CALA advocates for commonsense legal reform measures by educating the public about the devastating, real-world costs of lawsuit abuse on working families and small businesses.
About the Virginia Manufacturers Association (VMA)
The Virginia Manufacturers Association (VMA) is the unified voice of Virginia’s manufacturing sector, advocating for public policies that strengthen the Commonwealth’s business climate and supporting manufacturers through a wide range of workforce, professional development, and business services. The VMA works to advance a competitive manufacturing economy by engaging industry leaders, policymakers, and partners to ensure manufacturers in Virginia can innovate, grow, and succeed.