Federal court strikes down Louisiana law on disabled veterans' claims consultants

Ruling finds state's PLUS Act unconstitutional, blocking unauthorized consultants from taking fees from veterans' benefits

Published on Feb. 12, 2026

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A federal judge has ruled that Louisiana's 2024 PLUS Act, which allowed private companies to earn commissions on disabled veteran benefit claims, is unconstitutional. The court found the law violated federal supremacy and the First Amendment rights of attorneys representing veterans. The case marks a legal win for attorney John B. Wells, a Navy veteran, who filed the lawsuit challenging the law.

Why it matters

The ruling blocks unauthorized consultants from taking fees from veterans' disability benefits, which critics say was an exploitative practice. It also sets a precedent that could impact similar laws in other states seeking to regulate the controversial industry of 'claims consulting' for veterans' benefits.

The details

U.S. District Court Judge Brian A. Jackson granted a summary judgment against the state, ruling the Preserving Lawful Utilization of Services for Veterans Act (PLUS Act) is unconstitutional. The judge found the law violates the supremacy clause of the U.S. Constitution because federal law regulating VA disability claims supersedes Louisiana's law. The judge also ruled a mandatory disclosure provision in the act violates the First Amendment by compelling speech without a reasonable factual basis.

  • The Louisiana Legislature approved the PLUS Act in 2024.
  • The lawsuit, Military-Veterans Advocacy Inc. v. Landry, was filed in 2024 by attorney John B. Wells after the PLUS Act was passed.
  • The federal court ruling striking down the law was issued on February 12, 2026.

The players

John B. Wells

A retired U.S. Navy commander and Slidell lawyer who represents veterans in legal disputes with the U.S. Department of Veterans Affairs. He filed the lawsuit challenging the Louisiana PLUS Act.

Liz Murrill

The Louisiana Attorney General who is defending the PLUS Act and says the state intends to appeal the federal court's ruling.

Military-Veterans Advocacy Inc.

The organization that filed the lawsuit, Military-Veterans Advocacy Inc. v. Landry, challenging the constitutionality of the Louisiana PLUS Act.

Stewart Cathey

The Louisiana state senator who authored the PLUS Act that was struck down by the federal court.

Barack Obama

The former U.S. president who appointed Judge Brian A. Jackson, the federal judge who ruled the Louisiana PLUS Act unconstitutional.

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What they’re saying

“We're very happy with the opinion. We think it's going to be precedent setting.”

— John B. Wells, Retired U.S. Navy commander and attorney

“We disagree with the opinion and intend to file an appeal.”

— Liz Murrill, Louisiana Attorney General

“SB 159 established important guardrails to prevent predatory solicitation and ensure fee transparency, while preserving Veterans' right to seek lawful assistance. With those safeguards removed, the regulatory framework is less defined, creating potential risk for Veterans navigating an already complex benefits system. NAVR is actively working with Louisiana lawmakers to address the court's concerns and restore balanced protections that safeguard Veterans while maintaining their freedom of choice.”

— Ashleigh Barry, Vice President, National Association of Veteran Rights

What’s next

The Louisiana Attorney General's office says it plans to appeal the federal court's ruling striking down the state's PLUS Act.

The takeaway

This case highlights the ongoing debate over the role of private 'claims consulting' companies in assisting disabled veterans with their benefits claims. The federal court's ruling invalidating Louisiana's law sets an important precedent, but the issue remains unresolved at the national level as Congress has yet to pass legislation regulating this industry.