Buzz Patterson, a columnist for RedState, said that third-party litigation funding drives lawsuit abuse, which increases insurance premiums and harms small businesses and consumers in Colorado. The statement was made on X.
“The cost of living in the US is out of control, and one hidden driver is lawsuit abuse,” said Patterson. “‘Lawfare,’ funded by outsiders, needs to be addressed and stopped! Predatory third-party litigation funding allows outside investors, including foreign entities, to secretly bankroll lawsuits and collect a cut of the winnings. It’s driving up costs for everyday Americans, delaying justice, and undermining the already struggling integrity of our courts.”
According to recent developments, Colorado has moved to address concerns regarding opaque, foreign-backed lawsuit financing by introducing House Bill 25-1329 in 2025. This legislation requires foreign third-party litigation funders to disclose key details to the attorney general and prohibits certain practices. The bill responds to worries that hidden investors can prolong cases and inflate payouts. Civil-justice observers have also noted that the state’s expanding liability landscape serves as a magnet for more filings, increasing costs that affect local economies.
Insurers link third-party litigation funding (TPLF) to “social inflation,” which ultimately impacts premiums. In 2024 congressional testimony, the American Property Casualty Insurance Association warned that profit-seeking funders push for longer cases and larger settlements, thereby increasing defense and indemnity costs in commercial auto, general liability, and excess lines. These higher loss costs are passed on to policyholders, including Colorado’s small employers and families.
Colorado’s liability exposure expanded significantly in 2025. Watchdogs have noted dozens of new or broadened private rights of action enacted during this period. The American Tort Reform Association labeled the state a “lawsuit inferno,” while business advocates warned that added litigation avenues—combined with aggressive advertising and TPLF—raise operating costs and premiums for Main Street firms and consumers. News coverage reported 45 bills introduced to expand civil liability, many of which became law.
Buzz Patterson is a conservative commentator and author who served 20 years in the U.S. Air Force and was the senior military aide to President Bill Clinton, overseeing the “nuclear football.” He writes columns for RedState on national security, policy, and culture, frequently appearing on conservative media platforms to discuss current affairs and public policy debates.
RedState is a conservative political news and opinion site founded in 2004 and owned by Salem Media Group. It publishes reporting and commentary on national and state issues, election coverage, and movement politics. RedState’s contributors include journalists, policy analysts, and commentators focused on limited government and free-market perspectives.
