NJ Civil Justice Institute Slams State Lawsuit Against Meta

New Jersey Civil Justice Institute Slams State Lawsuit Against Meta

the staff of the Ridgewood blog

Trenton NJ, As opening arguments got underway in the multi-state lawsuit filed by New Jersey, Kentucky, California, and Colorado against Meta, the New Jersey Civil Justice Institute (NJCJI) released a critical statement warning that the litigation damages the state’s economic standing.

According to Elissa Frank, President of the NJCJI, targeting tech companies with high-profile litigation reinforces New Jersey’s reputation as hostile toward business and innovation.

“Headline-grabbing lawsuits are not a substitute for thoughtful policymaking,” said Frank. “Protecting kids online is one of the defining issues of our time, but New Jersey’s lawsuit against Meta is a poor use of resources and reinforces the state’s reputation as hostile toward business — chasing away investment, eroding the Garden State’s competitive edge, and undermining our legacy of innovation.”

Concerns Over Litigation Abuse and Cost Burden on Residents

The NJCJI highlighted broader systemic issues within New Jersey’s legal framework, arguing that multi-state actions combined with third-party lawsuit funding create an environment driven by profits rather than public interest:

• Rising Household Costs: Legal system abuses increase operational costs for businesses, which are ultimately passed down to taxpayers. A recent study indicated that New Jersey’s lawsuit system cost each household approximately $5,059 in 2020.

• Nuclear Verdicts: New Jersey consistently ranks among the top states for “nuclear verdicts” (lawsuits resulting in verdicts of $10 million or more).

• Third-Party Litigation Funding: The institute warned against hedge funds and outside investors financing litigation in exchange for a percentage of legal payouts.

Focusing on Practical Solutions for New Jersey

The NJCJI, a nonpartisan nonprofit organization backed by major state employers and business associations, advocates for clear legal standards and legal reforms to maintain an efficient civil justice system.

The organization urges state leaders to pursue direct policy solutions to protect youth online rather than engaging in lengthy court battles that deter job creation and corporate investment in the Garden State.