Arkansas legislator proposes junk lawsuit bill to combat out-of-state legal actions

The Arkansas House Judiciary Committee convened on April 15, 2025, to discuss a proposed bill aimed at addressing ongoing litigation that some lawmakers describe as "junk lawsuits." The bill, introduced by a member of the committee, seeks to protect local businesses from lawsuits related to prescription drug pricing practices, particularly those involving GoodRx cards.

The primary focus of the bill is to counteract lawsuits filed by an out-of-state law firm in partnership with a local firm. These lawsuits target businesses that help Arkansas residents obtain prescription medications at lower costs, claiming that the disclaimers on GoodRx cards are not sufficiently prominent. The bill's sponsor emphasized that no individuals have been harmed in these cases, raising concerns about the implications of allowing such lawsuits to continue.

Key provisions of the bill include a retroactive element, which aims to prevent future claims based on the current litigation. The sponsor argued that these lawsuits do not benefit constituents and instead enrich law firms, which he referred to as "tall building lawyers" from outside Arkansas. He expressed a strong desire to protect local businesses and reduce the burden on the state's court system.

During the meeting, committee members engaged in a question-and-answer session, with some lawmakers seeking clarification on the nature of the pending litigation and the legal standing of the plaintiffs. The discussion highlighted the complexities of the legal landscape surrounding these lawsuits and the challenges faced by local businesses.

The committee's deliberations reflect a growing concern among Arkansas lawmakers about the impact of litigation on local economies and the need for legislative measures to safeguard businesses from what they perceive as frivolous lawsuits. The outcome of this bill could have significant implications for the state's legal environment and the operations of businesses involved in providing affordable healthcare solutions.