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Prop 65 Private-Enforcement Reforms Won’t Disincentivize Bounty Hunting

 
• By Lauren Nardella and Ryan Nelson

Newly amended Prop 65 regulations seek to disincentivize private actions that would not result in significant public benefit, in part by imposing caps on “additional settlement payments.” Industry stakeholders predict, however, that plaintiffs and their counsel will simply seek increased attorney fees and/or greater civil penalties to cover the shortfall.

Changes to Prop 65 regulations in California could slow down some NGOs that have profited most from bringing suits against companies, but industry representatives say incentives for private enforcement will remain in cases where settlement offers nothing of value to the public.

Final amendments to Prop 65 regulations related to settlement terms and payments were approved by California authorities at the end of August and went into effect Oct. 1.

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