The American Tort Reform Association (ATRA) has announced its 2025 “Lawsuit Infernos” list, naming Colorado among the states that have expanded liability or failed to enact reforms. This situation, according to ATRA, creates a costly litigious environment for residents and businesses.
According to the association’s post on X, Colorado was included in the list because legislators expanded liability or did not pass reforms that could improve the business climate. ATRA explained that these actions leave the state in what it calls a “litigious status quo.” The designation underscores the association’s warning that Colorado’s legal environment poses long-term risks for employers, consumers, and the state economy.
In its 2025 Legislative HeatCheck report, ATRA found that excessive litigation costs the average American family $5,215 annually. These costs reflect higher consumer prices, increased insurance premiums, and reduced business activity tied to lawsuit abuse. For Colorado, ATRA emphasized that liability-expanding policies compound this financial burden, affecting small businesses and working families especially hard.
The Legislative HeatCheck 2025 also reported that states like Colorado face significant economic harm from excessive tort costs. According to ATRA, lawsuit abuse leads to job losses, GDP decline, and reduced state revenues, weakening long-term economic competitiveness. The group argued that without reforms, Colorado will continue to experience diminished business investment and slower growth compared to less litigious states.
The American Tort Reform Association was founded in 1986 as a nonprofit advocacy group committed to civil justice reform and reducing the costs of lawsuit abuse. According to its official materials, ATRA publishes reports such as Judicial Hellholes and Legislative HeatCheck to highlight states where liability expansion threatens economic stability. Its mission is to create a fair and balanced legal climate that supports job creation, strengthens businesses, and protects consumers from the hidden costs of litigation.
