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This is unfortunately rather common in the USA, specifically the issue of nuisance-value lawsuits: https://scholarship.law.nd.edu/law_faculty_scholarship/351/
So even without a meritorious lawsuit, a law firm can extract what is essential a ransom, because for a targeted business or individual, they would have to pay their own way for a defense attorney, taking time to go to court, and all sorts of other headaches. It can indeed seem reasonable to just pay a few thousand dollars to the attacking law firm just to make them go away.
Even if one jurisdiction were to implement some of those proposed solutions to nuisance-value lawsuits, there are 50 US States and the federal courts, so pernicious law firms can just go forum shopping.
For the specific issue of SLAPP lawsuits -- frivolous lawsuits claiming defamation, as a means to drain the target of their time and money to mount a defense, typically targeting critics -- the solution is fairly clear: anti-SLAPP laws that would make the plaintiffs of such garbage lawsuits pay the defendant's expenses. California and Texas have excellent anti-SLAPP suits, and so do almost a majority of states, but not the federal judiciary. We need a federal anti-SLAPP law ASAP.
I see this in my own field as patent trolls.
Not ordinary people, and relatively rare per capita; but the population is big enough to have many parasites; or a very proficient few based on what they practice.
My life would be easier professionally if the top ten patent trolls went out of business nationally