This news update regarding a new outbreak of Prop 65 lawsuit abuse is brought to you by foxandhoundsdaily.com.
A New Outbreak of Prop 65 Lawsuit Abuse Underscores Need for Reform.
CALA has documented the lawsuit abuse related to Proposition 65 for quite some time. Despite minimal reform (like Assemblyman Gatto’s AB 227 passed last year) the lawsuits have continued. With the state considering new regulations related to warnings that could actually bring more lawsuits, I thought it might be helpful to show one example of just how out-of-control Prop. 65 lawsuit abuse is getting, even though few in the news media are paying attention.
A little background: if your business is in violation of Proposition 65 (i.e., you don’t have a bland, useless warning sign about the presence of chemicals at your business) you can be sued for $2,500 per day either by the Attorney General, the District Attorney or a City Attorney. However, a private citizen can also bring a case against a business, which increases the likelihood of a business without a sign being sued.
As you can imagine, with potential penalties at $2,500 a day, the amount of money at stake can add up quickly, and the incentive to sue a business is quite high. Because the cost of mounting a legal defense can be ruinous, even if it is successful, many businesses simply choose to settle rather than fight these lawsuits. Some business owners I’ve spoken with have told me the average settlement in a Prop. 65 case is about $60,000, not including when the case enters into a private settlement.
For more information on a new outbreak of Prop 65 lawsuit abuse please visit the foxandhoundsdaily.com link above. Please contact Nexreg for Prop 65 Compliance.
