Ft Worth Times

Gerard Scimeca, co-founder and chairman of Consumer Action for a Strong Economy (CASE), recently said that a surge in mass tort cases has negatively impacted the legal system, the defendants involved in these cases, and the broader industries and economy.

“Mass litigation floods the courts with nonsense claims compiled into one lawsuit that may have one sound claim out of the thousands included in the case," Scimeca wrote in a recent DC Journal op-ed. " By combining claims, attorneys can increase the perceived damages, coercing defendants into larger settlements. Regulation is needed to ensure fairness and transparency for claimants and defendants in class-action lawsuits.

Scimeca also noted recent developments in a lawsuit against Johnson & Johnson over claims that trace amounts of asbestos in their baby powder caused harm to consumers. LTL Management, J&J's Texas-based subsidiary, has been fighting more than 61,000 lawsuits from consumers alleging injury from the products.

These cases have been some of the largest and most costly of their kind, with attorney fees sometimes reaching up to a third of the final settlement amounts.

"In the case of Johnson & Johnson, the company has offered multiple options to claimants looking to settle out of court rather than continue costly legal battles that could result in fewer rewards for those harmed," Yaël Ossowski, the deputy director for the Consumer Choice Center (CCC) wrote about the topic in a Dallas Express op-ed. "The latest settlement would be a combined $6.5 billion paid out over 25 years to those who were diagnosed with ovarian cancer," but due to large tort firms having interest in these payouts, the cases have continued.  

"Over the last decade, mass tort lawsuits have exploded in the U.S., with many cases being brought against companies operating in the healthcare sector,” Kasia Mulligan, national spokesperson for Patients Come First (PCF) said in a column on RealClearPolicy. “According to a Wall Street Journal news report, the number of federal civil cases increased almost a quarter from the year prior.”

“Litigation of this nature has sometimes served to hold bad actors accountable and ensure just compensation for victims,” she said. “However, the unfortunate reality is that the recent surge has largely been driven by frivolous lawsuits, with some private-equity firms and hedge funds joining in on the action, loaning out billions to law firms to fund litigation and for ad time with the expectation of a return on their investments. While these cases may intend to benefit patients, they end up hindering progress, causing patients to ultimately bear the brunt of lost innovation."

Gerard Scimeca is the co-founder and current chairman of Consumer Action for a Strong Economy. He is also a licensed attorney.