A federal judge has torn up Louisiana’s short-lived 2024 PLUS Act, ruling that the state law legalizing paid “claims consultants” for veterans’ benefits cannot stand. The decision halts enforcement of a statute that would have let private businesses take contingency cuts of disabled veterans’ checks, and it leaves veterans, lawyers and newly formed consulting outfits in a legal holding pattern while the state weighs an appeal.
U.S. District Judge Brian A. Jackson granted summary judgment to the plaintiffs and issued an injunction blocking enforcement of the Preserving Lawful Utilization of Services for Veterans Act. The court found that the statute conflicts with federal law that governs Department of Veterans Affairs claims and that its mandatory disclosure provision unconstitutionally compels speech. The full reasoning appears in the court order, as per Justia.
Enacted in 2024 as La. Stat. Ann. § 29:296, the PLUS Act attempted to corral what backers called a growing market of claims consultants by capping contingency fees at $12,500 and spelling out disclosure and contract requirements. Supporters pitched the law as basic consumer protection. Critics countered that it would open the door for unaccredited firms to siphon off benefit checks with no VA oversight. The statute itself details the compensation ceiling and written-agreement standards; see La. Stat. Ann. § 29:296.
Federal law and VA regulations already restrict who can get paid to help with veterans’ benefits. Only VA-accredited agents and attorneys may charge fees for representation in many parts of the process, and even then fees are limited to certain post-decision stages. The VA’s rule at 38 C.F.R. § 14.636 lays out who can charge and when. For background, see 38 C.F.R. § 14.636.
The lawsuit, Military-Veterans Advocacy Inc. v. Landry, was filed in 2024 by Slidell attorney John B. Wells, a retired U.S. Navy commander who represents veterans in appeals. Wells told the Louisiana Illuminator that the ruling could be precedent setting, and the outlet charts the case’s local roots and legal path.
Louisiana Attorney General Liz Murrill, whose office defended the law, told New Orleans CityBusiness that the state disagrees with the opinion and intends to file an appeal. Industry advocates, including the National Association for Veteran Rights, argued that the statute created guardrails to curb predatory solicitation. Veterans-service organizations responded that free help is already available through accredited groups and that veterans should not have to carve up their benefits to get it.
What the court said and why it matters
Judge Jackson wrote that the PLUS Act impedes "the realization of Congress's goal of ensuring that veterans have access to qualified representatives to assist them in pursuing claims for VA benefits,” concluding that the state law is preempted under the Supremacy Clause and that the disclosure requirement amounts to unconstitutional compelled speech. The judge granted summary judgment for the plaintiffs and barred enforcement. The legal analysis, which turns on preemption and free speech, is summarized by Bloomberg Law.
The ruling is expected to influence how other states approach efforts to rein in, or open up, the veterans’ claims-consulting market. Lawmakers elsewhere who are eyeing similar laws now have a federal decision spelling out where state regulation collides with the VA’s turf.
What’s next for veterans and the industry
The state has signaled it will appeal, and industry groups say they plan to work with legislators to address the court’s concerns while similar lawsuits in other states play out, according to reporting by the Louisiana Illuminator and New Orleans CityBusiness.
For veterans wary of aggressive pitches and fine print, the Department of Veterans Affairs notes that VA-recognized Veterans Service Organizations, accredited claims agents and accredited attorneys remain the authorized, free or regulated options for help with benefits claims. For that guidance, see the VA’s list of accredited representatives at the Department of Veterans Affairs.
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