Federal Website Lawsuits Spike; Community Banks Get Demand Letters*

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Seyfarth Synopsis:  The number of federal lawsuits alleging inaccessible websites continues to increase, along with the number of law firms filing them.  Businesses should seek advice now on how to manage risk in this chaotic environment.

As we predicted, website accessibility lawsuits and threatened claims have become big business for the plaintiffs’ bar.  More law firms are filing lawsuits or sending demand letters alleging individuals with disabilities are denied access to a business’s goods and services due to inaccessible websites than ever.  The number of lawsuits filed in federal court since the beginning of 2015 has surged to at least 244 as of October 20, 2016.  Retailers have been the most popular targets, followed by restaurant and hospitality companies.

NumberNumber of federal website lawsuits by industry from January 2015 to October 20, 2016: Academic (3), Dating Services (1), Entertainment (9), Financial (2), Gaming (1), Hospitality (12), Insurance (1), Medical (8), Personal Services (4), Restaurant (45), Retail (148), Sports (2), Utility (1), Vehicle Manufacturer (7)

We analyzed the data to find that five firms dominate the space, but we have seen more and more attempting to get in on the action.

Plaintiff's firms filing the most federal website lawsuits since January 2015: Block Leviton (3%), Carlson Lynch (45%), Law Office of Joseph R. Manning Jr. APC (7%), Lee Litigation Group (33%), Nelson Boyd (5%), Newport Trial Group (19%), Scott R. Dinin, PA (106%), Stewart, Murray & Associates Law Group (6%), Other Firms (8%)Plaintiff’s firms filing the most federal website lawsuits since January 2015: Block Leviton (1%), Carlson Lynch (18%), Law Office of Joseph R. Manning Jr. APC (3%), Lee Litigation Group (14%), Nelson Boyd (2%), Newport Trial Group (8%), Scott R. Dinin, PA (43%), Stewart, Murray & Associates Law Group (3%), Other Firms (8%)

Florida, Pennsylvania, New York, and California federal courts have 95% of the lawsuits at this point, but, with two months left in the year, that could change.

States with the most federal website lawsuits being filed since January 2015: California (29), Massachusetts (5), Pennsylvania (43), Washington (5), Florida (124)States with the most federal website lawsuits since January 2015: Arizona (1), California (29), Florida (124), Indiana (1), Massachusetts (5), New York (35), Pennsylvania (43), Texas (1), Washington (5)

We have previously reported that several law firms representing unnamed clients with disabilities had sent out hundreds of demand letters to various types of businesses concerning their allegedly inaccessible websites.  From what we can tell, very few of those demand letters went to financial services institutions.  We have learned that the most recent batch of demand letters is focused on the websites of community banks around the country.

Meanwhile, we still have no proposed regulations for public accommodations websites from the DOJ and a change in administration could derail or delay the rulemaking process further.  Thus, the need is no less urgent for businesses to come up with a plan to mitigate their litigation exposure in this tumultuous environment.

*We updated this post to correct the data, as we found the number of lawsuits filed to be even higher than we previously reported. There is no easy way to track these website cases as they are filed so the numbers could be even higher.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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