Houston Republic

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

"The American legal system is full of challenges that significantly affect consumers and businesses," Scimeca wrote in a recent DC Journal op-ed. "As litigation costs continue to rise, these costs inevitably trickle down to the consumer, inflating the prices of goods and services. The need for common-sense legal reforms has never been more apparent."

"One issue affecting our legal system is the mounting number of mass tort cases," he said. "These excessive settlements burden the defendants and spill over into the economy, hurting industry competitiveness and forcing businesses to drive up consumer costs."

Scimeca also acknowledged the recent developments made in a litigation case against Johnson and Johnson for harm caused by trace amounts of asbestos in their baby powder products. LTL Management, J&J’s Texas-based subsidiary, has been fighting over 61,000 cases of consumers claiming these products caused them harm. 

These cases have been some of the largest and most expensive of their kind, and attorney fees for these cases can be as high as a third of the final payout. 

"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.