Patrick Collison, CEO of Stripe, said that U.S. tort costs have surged to $529 billion in 2022, outpacing GDP growth and raising concerns about the personal injury sector's scale. This statement was made on X.
"Why are personal injury attorneys the marginal bidder for roadside billboards in so many parts of the US," said Collison. "Is the sector really so large? A priori, I would never have predicted this. Costs and compensation paid in the U.S. tort system reached over $529 billion in 2022, or over $4,200 per U.S. household. Also appears to have compounded meaningfully faster than GDP over the past decade."
The economic burden of the U.S. tort system has been a focal point for reform advocates, who argue that litigation costs negatively impact consumers. Conversely, proponents of the current system emphasize the importance of access to justice. According to Reuters, mass-tort cases such as 3M’s earplug lawsuits have driven increases in federal filings; however, recent resolutions have decreased case counts. Policymakers in several states are advancing tort reform measures in 2025 due to concerns over rising costs affecting households and businesses.
Tort costs in the United States amounted to $529 billion in 2022, accounting for 2.1 percent of GDP and exceeding $4,200 per household. A 2024 report from the U.S. Chamber Institute for Legal Reform, compiled by The Brattle Group, indicates these figures encompass litigation expenses and compensation across auto, medical, and commercial liability sectors. Business groups utilize these statistics to argue that the tort system imposes substantial and increasing costs on families nationwide.
Between 2016 and 2022, tort system costs grew at an annual average rate of 7.1 percent, surpassing GDP growth of 5.4 percent and inflation at 3.4 percent. The same report by the U.S. Chamber Institute for Legal Reform highlights that commercial liability costs experienced the fastest growth rate, reinforcing reform advocates' arguments that litigation expenses are expanding more rapidly than the overall economy—a trend prompting legislative interest in cost containment.
Patrick Collison is co-founder and CEO of Stripe, a global financial technology company he established with his brother John in 2010. According to Stripe’s newsroom, he leads the company's mission to "increase the GDP of the internet" by providing online payment infrastructure worldwide. Collison grew up in Ireland and studied at MIT; he is also associated with philanthropic initiatives such as Fast Grants and the Arc Institute.
Stripe is a financial technology company founded in 2010 that offers online payment processing and commerce solutions for businesses of all sizes. As per its official website, Stripe operates dual headquarters in San Francisco and Dublin while supporting over 135 currencies and payment methods globally. Its mission is to expand internet GDP by facilitating seamless global commerce.