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New Prop 65 Settlement Requirement Could Raise Costs, PR Issues For Firms

This article was originally published in The Rose Sheet

Executive Summary

Product reformulations in the context of Prop 65 settlements will not be seen as conferring a public benefit unless it is demonstrated that expected exposure levels to listed chemicals are reduced, per new regulations adopted in California. The change may have been well-intended, but like other recent reforms to the Prop 65 program, it comes up short and may add to defendants’ costs and headaches, stakeholders say.

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

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.

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