Chicago City Wire

Illinois Citizens Against Lawsuit Abuse (CALA-IL) has unveiled the "Illinois Predatory Lawsuit Report -BIPA" highlighting a troubling trend of predatory law firms exploiting a loophole in the state’s Biometric Information Privacy Act (BIPA). This report shines a spotlight on how a few law firms, some from out of state, are taking advantage of BIPA to the detriment of local businesses and the state's economy.

“While BIPA was initially enacted with good intentions to protect individuals' biometric privacy, the report reveals how it has become a vehicle for predatory law firms exploiting a legislative loophole in the BIPA law,” said CALA-IL Executive Director, Phil Melin.

The report's findings paint a concerning picture:

• A Small Number of Predatory Law Firms Causing Massive Damage: "A small number of multi-state law firms are initiating a significant majority of the nearly 1,150 active BIPA lawsuits against Illinois employers in Federal Court or Chicago Metro County Courts. The approximately 745 BIPA cases brought by just 7 law firms amount to nearly 70% of the total active BIPA cases filed.
• Out-of-State Law Firms: Two out-of-state law firms, Beaumont Costales and Peiffer Wolf, are responsible for a substantial portion of these lawsuits. Beaumont Costales, based in New Orleans, has filed 189 separate BIPA lawsuits in Chicago Metro and Federal Court, accounting for 17% of active suits, while Peiffer Wolf, also based in New Orleans, has initiated approximately 122 separate BIPA lawsuits (11% of active suits).

Melin stresses the urgency of addressing this issue: "These findings reveal an alarming trend of predatory law firms exploiting the BIPA loophole, causing severe harm to our state's businesses. We must act now to protect our local economy and communities. The Illinois legislature failed to reform BIPA during the veto session and has chosen to allow a few out-of-state predatory law firms to enrich themselves at the expense of Illinois employers.”

The report highlights the critical need for the Illinois legislature to address the BIPA loophole during the upcoming veto session. "Our call to action is clear: we urge our lawmakers to enact necessary reforms in 2024 and put an end to the abuse of this loophole by predatory law firms, including those from out of state," Melin emphasized.

About CALA-Illinois

CALA-Illinois is the grassroots arm of Citizens Against Lawsuit Abuse. Citizens Against Lawsuit Abuse (CALA) is a nonpartisan, grassroots movement working to end rampant lawsuit abuse across the United States. CALA advocates for commonsense legal reform measures by educating the public about the devastating, real-world costs of lawsuit abuse on working families and small businesses. Learn more at https://cala.com/illinois/