Smart Money Happy Hour with Rachel Cruze & George Kamel

Episode Title: Did These High-Dollar Lawsuits Pay Off?
Air Date: August 21, 2025
Podcast Network: Ramsey Network

Episode Overview

Rachel Cruze and George Kamel, two down-to-earth money experts, enjoy a citrus paloma mocktail (non-alcoholic!) and dig into the world of lucrative lawsuits—both infamous and obscure. They dissect both celebrity court dramas and the everyday reality of America’s hyper-litigious culture, while offering insights, fun quizzes, and their signature friendly banter.

Key Discussion Points & Insights

1. Not Legal Advice—but Lots of Lawsuit Talk

• Rachel and George kick off with a disclaimer: “We cannot stress enough that we are not actual lawyers. We are not attempting to give official legal advice in any way, shape or form, but sue us for wanting to talk about lucrative lawsuits anyway.” (00:20 - George)
• They highlight how everyone’s at risk: “Anyone can sue you for anything in America…an intruder could slip and fall on your front porch and sue you.” (02:39 - George)
• Rachel reminds: “You gotta be careful.” (02:35 - Rachel)

2. America’s Obsession with Lawsuits

• The pair marvel at the sheer volume:
  • Over 100 million lawsuits filed in state courts yearly; another 400,000 in federal court.
  • “That comes out to one lawsuit for every three American citizens.” (06:15 - Rachel)
  • “That means you’re next. Based on the stats, I already took the hit.” (06:21 - George)

3. Pop Culture’s Juiciest Lawsuits: Recent & Classic Cases

Blake Lively, Justin Baldoni, and Celebrity Legal Drama

• Rachel references the ongoing high-profile lawsuit involving Justin Baldoni and Blake Lively over alleged sexual harassment.
• Noted: “Stats show...if a woman brings that forward, it’s like, what was the exact stat? It was like 92 to 98% it is truthful on her end...” (03:53 - Rachel)
• The court of public opinion seems to lean towards Justin, but Rachel and George acknowledge the details are murky and unfolding.

Taylor Swift’s Subpoena

• “Taylor Swift is...going to subpoena her. I know. I’m telling you, it’s...” (05:24 - Rachel)
• “You know how busy she is. She doesn’t have time for this.” (05:34 - George)

America’s Most Lucrative Legal Battles – QUIZ GAME

• Biggest U.S. Cash Settlement:

  • Q: Was it BP Oil, Tobacco, CVS/Walgreens (opioid), or Navient?
  • A: The 1998 Tobacco Master Settlement at $206 billion. (12:27)
  • “The BP oil spill, $20 billion. Compared to that, 206.” (12:50 - George)
  • Reflections on the days of “smoking or non-smoking” restaurant sections, and how the issues evolved to vapes and pouches.

• Funny/Frivolous Suits:

  • Florida woman sues Kraft Macaroni & Cheese for misleading microwave instructions:
    “Kraft...You are correct. The woman’s name is Amanda and says that’s only the amount of time each cup should be microwaved. There’s prep required beyond the microwavable.” (13:59-14:18)

The Infamous McDonald’s Coffee Lawsuit

• “At the time, McDonald's handbook required franchises to hold their coffee at 180 to 190 degrees Fahrenheit... [the plaintiff] suffered third degree burns that required skin grafts.” (14:44 – Rachel)
• George and Rachel debate whether it was frivolous, but ultimately agree that legitimate injury happened.

Gwyneth Paltrow’s Ski Crash Suit

• Terry Sanderson sued Gwyneth Paltrow for $3.1 million over a ski accident; she counter-sued for $1 to make a statement. “Full respect on Gwen’s side for that. I don’t care what you say about Coop. That was a baller move.” (21:58 - George)
• They discuss "quiet luxury" and how Gwyneth’s court fashion set trends.

Ed Sheeran & Copyright Lawsuits

• Ed Sheeran has successfully defended multiple copyright cases: “He shows up to court with his little guitar…and proves that you can play lots of songs over the same melodies and chords.” (19:53 - George)
• George quotes Sheeran: “Nobody owns the color blue.” (20:21)

4. Law 101: Civil v. Class Action

• George explains:
  • Civil case: Dispute between individuals or businesses, seeking money.
  • Class action: "One of the injured parties pulls a little Katniss Everdeen and volunteers as tribute to represent a larger group." (08:50 - George)
• George shared he’s actually received small payouts from joining class actions!

5. Protecting Yourself: Insurance and Wealth

• Discussion of how people with higher net worth are bigger targets:
  • “Once you hit a half million dollar net worth, it’s wise to get an umbrella policy.” (25:09 - George)
  • “If you hit your legal limits for a payout, then umbrella insurance would then kick in to cover the rest.” (25:09 - George)
• Dave Ramsey pro tip: “Dave owns nothing. Everything is owned by an LLC and an entity.” (25:43 - George)
• The risk of lawsuits increases with public status, wealth, and even certain professions or activities. 90% of businesses are sued at least once.

6. Fun and Nostalgia: Guilty as Charged (Fashion Edition)

• Rachel and George swap stories about bad fashion trends:
  • George: “The deep V…skinny jeans, like the scene kids…with the hair to the side…Just able to grow chest hair and I thought it was so cool…” (29:32)
  • Rachel: “I wore my hair like this daily…was the poof…the front poof… Then I have a cowlick so mine would always go to the side…” (30:19)
  • Both laugh about trends like Hollister tees, puka shells, Crocs/their comeback, and more.
  • Notable George line: “The fashion police might sue me for this one.” (29:07)

Notable Quotes & Moments (with Timestamps)

• George (01:22): “Paloma…isn’t that what Pookie and Jets named their daughter? I love that. That was your first connection point.”
• Rachel (03:53): “Stats show that if a woman brings [a sexual harassment lawsuit] forward…it’s like 92 to 98 percent it is truthful on her end…”
• George (06:21): “That means you’re next. Based on the stats, I already took the hit.”
• George (12:27): “You’d be correct…$206 billion.” (On tobacco settlement)
• Rachel (14:44): “The hot coffee…third degree burns that required skin grafts.”
• Rachel (15:36): “There’s some things that are like user error…if I have a knife and I cut my finger…”
• George (19:53): “[Ed Sheeran] shows up to court with his little guitar…let me show you how many songs you can play over the same exact melodies and chords.”
• George (20:21): “Nobody owns the color blue.” (Quoting Ed Sheeran)
• George (21:58): “Full respect on Gwen’s side for that…that was a baller move.”
• George (25:09): “Once you hit a half million dollar net worth, it’s wise to get an umbrella policy.”
• George (29:07): “The fashion police might sue me for this one.”
• Rachel (30:19): "You know what I did and I wore my hair like this daily...was the poof..."

Practical Takeaways

• Insurance Is Essential: If your net worth surpasses $500k, seriously consider an umbrella insurance policy.
• Asset Protection: Consider using LLCs/trusts for personal asset protection—even Dave Ramsey does.
• Be Vigilant: The U.S. is highly litigious; public figures and business owners especially need legal and financial safeguards.

Fun Segment

• Drink of the Day: Citrus Paloma Mocktail
  • Cost: $2.42/glass. Rated: 9/10 by Rachel, 8.5/10 by George (prefers sugar rim over salt).
  • “What a great mocktail from the team.” (28:40 - George)

Further Resources

• Check out Ramsey Solutions for guidance on insurance and financial planning
• Get the Citrus Paloma recipe from the show notes
• Next episode: "Money, Motives Hidden in and Shocking True Crime Stories"

For the Fans

If you enjoyed this episode, connect with Rachel and George on Instagram:

• @RachelCruze
• @GeorgeKamel

And don't forget: “America is land of the free…and sometimes that means we are free to sue whoever we want for whatever we want.” (24:42 - George)

This summary covers all core content while skipping ads, intros, and outro segments. For direct quotes and more, refer to timestamps above.