25 Investigates is tracking more than 15,000 so-called “sue-and-settle” lawsuits filed against businesses nationwide in just the last three years.
The lawsuits claim that company websites are not compliant with the Americans with Disabilities Act for users who are visually impaired. Critics say some attorneys are cashing in on quick settlements, while others argue the lawsuits serve the greater good.
Boston fashion designer Sara Campbell is among those sued — three times.
“We’ve worked so hard on this. How? What is going on?”
Campbell says her company website, saracampbell.com, was targeted despite years of work to ensure accessibility.
The law requires businesses to make websites accessible to people who are visually impaired.
“We were compliant. They found something inside the code,” she told anchor and investigative reporter Kerry Kavanaugh.
Campbell says she worked with Perkins School for the Blind and an ADA coder to improve accessibility — yet plaintiffs still found grounds to sue.
“Do I feel like they’re scams? I feel they’re scam,” she said.
A 25 Investigates analysis, conducted with sister stations across the country, found 15,332 ADA website lawsuits filed since 2022.
125 of those cases were filed in Massachusetts courts.
Behind each lawsuit is a person who is visually impaired claiming difficulty accessing a specific website.
25 Investigates sister station, WFTV-TV in Orlando, tracked down one plaintiff in Miami who says he willingly signed his name to hundreds of lawsuits. Court records show 383 cases filed in his name.
Victor Ariza, ADA Lawsuit Plaintiff told our colleagues in Spanish the lawsuits are about helping as many people as possible who, like him, are blind. He says if money comes from settlements, it allows them to help more people who need technological assistance.
Former small business owner Nayan Padrai says a small number of law firms are driving most of the cases.
“There was about 20 law firms around the country. About five were filing the majority of the lawsuits,” said Nayan Padrai, a business owner in California.
After being sued himself in California, Padrai began investigating the lawsuits and is now producing a documentary, “Blind Sighted”. He says law firms have turned quick “sue-and-settle” cases into a business model.
“So, the plaintiffs in New York that we spoke to were paid $500 for every settlement that had their name on them” Padrai said. “But the settlements generally were in the tens of thousands of dollars.”
The National Retail Federation is now calling on Congress to take another look at how the ADA is applied to websites.
“I think we need a better law. I think that we need a different way to deal with this,” said Stephanie Martz, National Retail Federation’s chief administrative officer and general counsel.
The federation says businesses want to comply but need clearer guidance.
“We want to sell things to everybody. We have no interest in not complying with reasonable, predictable rules that are being enforced in a reasonable and predictable way,” Martz said.
Martz warns the cost of settlements can ultimately affect consumers.
“But sometimes they absolutely have to because like I said the margins are really razor thin,” said Martz.
Campbell says settlement demands felt like a shakedown.
“They start with 25 ($25,000) and you have to negotiate down. Like, what are they gonna take?” she said. “I’m being bullied and I have to acquiesce. And that’s a horrible feeling.”
The National Retail Federation is urging Congress to rewrite the ADA’s website provisions, clearly defining how businesses can comply and avoid costly lawsuits.
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