Our editor has an op-ed in today’s Journal on the latest developments in California’s “shakedown lawsuit” scandal, in which law firms were discovered to be mass-mailing demand letters holding up small businesses for thousands of dollars apiece under the state’s uniquely liberal “unfair competition law”, otherwise known as Business and Professions Code 17200. In brief, the Democratic leadership of the state legislature in Sacramento is using the scandal as an excuse to push through legislation that, along with a bit of window-dressing reform directed at the more obvious shakedown artists, would actually increase lawyers’ leverage to obtain settlements from defendants under section 17200. (Walter Olson, “The Shakedown State”, Wall Street Journal, Jul. 22). We covered the scandal earlier on Jan. 15-16 and Mar. 3; for more on California’s bounty-hunting Prop 65, follow these links and in particular our post for Nov. 4-5, 2002. More: The Civil Justice Association of California maintains a lot of information on the status of section 17200 legislation, especially here, here and here.

Filed under: class actions, environment, ethics, Prop 65