ARTICLE
4 May 2026

States Consider Options To Curtail Public Nuisance Suits

D
Dechert

Contributor

Dechert is the law firm that helps business leaders lead. For more than 150 years, we have advised clients on critical issues – from high-stakes litigation to first-in-market transaction structures and complex regulatory matters. Our lawyers in commercial centers worldwide are immersed in the key sectors we serve – financial services, private capital, real estate, life sciences and technology. Dechert delivers unwavering partnership so our clients can achieve unprecedented results.
New York considers legislation targeting AI chatbot operators for unauthorized practice of law, while Indiana pursues tort reform to limit public nuisance claims and the American Arbitration Association expands AI tools for dispute resolution. These developments signal a critical intersection of artificial intelligence regulation, professional liability standards, and evolving arbitration practices that will reshape how businesses navigate legal risk in an AI-driven landscape.
United States Litigation, Mediation & Arbitration
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Key Takeaways

State legislatures continue to explore restrictions on public nuisance liability, particularly for product-adjacent claims and public-entity plaintiffs. Where legislatures ultimately draw the line on who may sue and what conduct qualifies will shape public nuisance litigation risk and defense strategy for years to come.

As we highlighted last month, public nuisance theories have become an increasingly common vehicle for plaintiffs, including governmental entities, to pursue product liability claims. The theory gained traction in the opioid litigation and has since appeared in emerging waves of litigation, including claims against social media platforms brought by school districts and other public entities. For example, in a recent order in In re: Social Media Adolescent Addiction/Personal Injury Products Liability Litigation, Judge Gonzalez Rogers denied summary judgment and ruled that a school district’s public nuisance claims could proceed to trial.

Some states, however, are considering steps to curtail the scope of public nuisance lawsuits. Indiana is actively considering a tort reform proposal that would limit who may bring a public nuisance claim and what those claims may encompass. House Bill 1417 would restrict public nuisance actions to “governmental entities,” defined to include the State of Indiana and its agencies, while expressly excluding political subdivisions, municipalities, and other local units. In practice, the bill would foreclose public nuisance suits by many local public bodies (including school districts) and would also prevent private individuals from being able to bring a public nuisance claim. The bill would also establish a Tort Reform Commission to review civil causes of action across the state. Notably, the proposal was originally considered in a broader form but was narrowed by the Senate Judiciary Committee.

Indiana is not alone. Last year, Montana enacted first-of-its-kind legislation, H.B. 791, which redefined public nuisance under Montana law to exclude claims related to the design, manufacture, distribution, sale, or marketing of products.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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