Attorney General Laxalt Successfully Intervenes in Effort to Curb Abusive Litigation Practices that Take Advantage of Nevada’s Small Businesses

October 13, 2017

Carson City, NV – Nevada Attorney General Adam Paul Laxalt announced that a U.S. District Court Judge issued an order granting his request to intervene in a case of a business being sued for allegations of violations of the Americans with Disabilities Act (ADA). The Attorney General’s Office requested intervention with intent to consolidate more than 180 cases brought against local businesses. The plaintiff is the same person in each case and alleges each business violated the ADA. However, the Attorney General’s Office believes these cases are potentially malicious, or at best, premature and poorly drafted, and primarily motivated by financial gain. The plaintiff admits to choosing to sue without first providing the businesses any notice or opportunity to address the allegations.

    In its order, the Court agreed with the State’s argument that it is entitled to intervene to protect the public interest, citing to the fact the 184 cases have already been settled or dismissed, and the average settlement is alleged to be in the range of $2,000. The Court further reasoned that the State’s intervention may also serve as a deterrent to “other abusive litigation schemes directed at Nevada businesses.”

      The Court noted that the plaintiff in each of the cases received only $50 as compensation for each case. However, the remaining settlement decisions and the amounts were left, presumably, to Litigation Management and Financial Services, LLC (an interested party) and the plaintiff’s attorney.

        “I will aggressively fight to protect the public’s interest, including the rights of businesses and consumers,” said Laxalt. “This decision marks the first step in a series of steps my office will take during this litigation to protect Nevada’s small businesses.”

          The State takes no position at this time as to whether an ADA violation exists in any particular case. The judge’s order is attached.