As COVID-19 strains the health care system and economy, lawsuits related to the coronavirus are already beginning. Some states and the federal government are taking action to limit liability for businesses and health care workers acting in good faith to help address the pandemic. WCJC is working with Wisconsin legislators to do the same. President of the U.S. Chamber Institute for Legal Reform (ILR) Harold Kim has stated that “limiting litigation abuse is essential to ensuring the stability and economic recovery from COVID-19.”

Already, lawsuits related to COVID-19 have been filed across the country. Legal Newsline recently reported on plaintiff attorneys looking to cash in on the pandemic. Litigation targets range from false advertising claims to medical malpractice lawsuits to securities lawsuits.

• A lawsuit has been filed against the maker of Purell hand sanitizer, alleging the claim that Purell sanitizer kills 99.9 percent of germs is misleading. Similar false advertising claims have been filed against drug manufacturers, and manufacturers of protective equipment could also be at risk.
• USA Today recently reported on lawsuits against cruise lines, colleges, and insurers.
• Employees, including some government employees and workers at essential businesses, are suing their employers arguing they were exposed to coronavirus.
• Businesses are seeing price gouging complaints from private parties and state attorneys general.
• Health care providers are suing their hospitals and clinics for failing to provide personal protective equipment. Patients are in turn suing their health care providers for medical malpractice.
• At least two securities lawsuits have already been filed by shareholders about stocks decreasing in value due to COVID-19.
• Legal Newsline has reported that grocery stores and pharmacies could be the next target of litigation.
• Consumers are filing lawsuits when they are unable to obtain refunds for services no longer offered due to the pandemic, such as gym memberships, tuition payments, and events.
• Thousands of banks have stated hesitations about participating in the federal government’s small business loan programs due to concerns about taking on legal responsibility for preventing fraudulent claims.
• The National Law Journal predicts False Claims Act litigation will likely follow the passage of the federal CARES Act stimulus package. (WCJC successfully advocated for the repeal of Wisconsin’s False Claims Act in 2015 and successfully helped remove provisions in Gov. Evers’ 2019-21 state budget that would have revived false claims lawsuits.)

ILR President Kim said this early litigation is just “the tip of the iceberg.”

States including New York, Kentucky and Michigan have already taken bipartisan action to protect health care workers fighting COVID-19 on the frontlines from frivolous lawsuits. Protecting providers from liability will allow those treating COVID-19 patients to act quickly and effectively without fear of facing expensive lawsuits when they are acting in good faith. Liability protections will give providers flexibility to treat more patients and treat them in innovative ways during this crisis.

WCJC is looking at enacting similar provisions in Wisconsin, as well as working with Wisconsin Manufacturers & Commerce on provisions to protect manufacturers of personal protective equipment and employers who are working to keep their essential employees safe.

Some liability reforms to protect businesses during COVID-19 have already passed at the federal level. The Families First Coronavirus Response Act (FFCRA) included liability protection for N95 face mask manufacturers. After passage of the bill 3M said it will almost double production of the masks to make 2 billion this year.