"Shakedown lawsuits’ hurt job creation

Published: Thursday, Jan. 9, 2014 - 10:10 am

Re "Government worsens rich-poor gap" (Viewpoints, Dec. 12): Dan Logue is correct that lawsuit abuse is one reason why California's economy remains so weak and job creation has been tepid. California's small businesses are the engine of economic growth, but they are too often the victims of shakedown lawsuits alleging technical violations of laws such as Proposition 65. Under Prop. 65, businesses must warn consumers of any chemicals in products that might cause cancer or other health concerns. The lawsuits can cost a business tens of thousands of dollars, which is money they can't spend on hiring new workers. The cost is inevitably passed on to consumers through price increases. California is consistently ranked among the worst states in which to do business. If we are serious about growing our economy, our state needs comprehensive reform of Prop. 65 and other laws that encourage shakedown lawsuits against businesses.

-- Tom Scott, Folsom, executive director, California Citizens Against Lawsuit Abuse

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