The Stop Helping Outcome Preferences Act, or SHOP Act, makes three major changes to federal court procedures. First, it restricts federal judges from issuing nationwide injunctions, limiting injunctive orders to only apply to the parties involved in a case or people in that specific judicial district. Second, it creates rules to prevent "judge shopping," where attorneys attempt to manipulate which judge hears their case, with penalties including disbarment for those caught engaging in this practice. Third, it reforms bankruptcy venue rules to prevent companies from filing for bankruptcy in distant districts far from where their business is actually located, instead requiring bankruptcy cases to be filed where the company's main office or principal assets are located, measured over the prior 180 days, with limited exceptions. The legislation also addresses patent case venue by narrowing where patent infringement lawsuits can be filed, restricting suits to districts where the defendant is located or where the infringement actually occurred with a physical facility. The bill was introduced in April 2024 and does not specify funding requirements or implementation timelines.
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