No, the competitors benefit when one company implodes. Frivolous lawsuits are wrong and business killing, but true negligence needs lawsuits.
You wouldn’t like a country without lawsuits. I’ve lived there. Bosses, doctors, etc are gods and the people have no rights.
Competitors benefit when consumers want and can afford to purchase their goods and services. When the lawyers sue a company out of existence, insurance rates rise and the cost of providing the goods and services escalate across the industry. The winners are the lawyers.
Take a moment to think through your argument. You aren't seeing the deep blue sea through the salty air.