REPORT: NY business groups accuse Letitia James of trying to bury them with ‘legal shakedowns’

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From the New York Post: New York business groups are blasting Attorney General Tish James for a pro-consumer push that they fear would be a legislative misfire — boosting greedy lawyers and unleashing “legal shakedowns.”

James’ FAIR Business Practices Act looks to tighten up consumer protections to crack down on shady crimes like deed theft, junk fees and hard-to-cancel subscriptions, but critics said it will open up small businesses to frivolous lawsuits and legal threats.

“The so-called FAIR Act would be anything but fair to New York’s business community, especially Main Street businesses,” said Tom Stebbins, executive director of the Lawsuit Reform Alliance of NY.

“It strips away longstanding legal safeguards and due process protections — like ensuring that claims are consumer-oriented or that plaintiffs actually have standing to sue — and replaces them with a system that invites abuse,” Stebbins added.


“The bill would specifically authorize profit-motivated law firms to send letters demanding pre-suit settlements for damages and fees. That’s a recipe for a cottage industry of legal shakedowns, where small businesses are targeted not for wrongdoing, but because they lack the resources to fight back,” Stebbins further warned.

“AG’s should crack down on real crimes, like rampant insurance fraud and lawsuit abuse, and not file politicized lawsuits,” Stebbins said in a statement from the Lawsuit Reform Alliance of NY.

READ MORE from the New York Post.

James is currently under investigation by the Department of Justice for mortgage fraud allegations.

REPORT: FBI opens formal criminal probe into New York AG Letitia James [Conservatives react]

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