ThirdParty

Surge in Legal Advertising and Third-Party Funding Drives Up Insurance Rates, Experts Warn

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New York — A recent report from the Insurance Information Institute indicates that a significant uptick in attorney advertising, mass tort litigation, and third-party funding for lawsuits is closely linked to rising insurance costs in the United States. Research by the American Tort Reform Association reveals that legal service providers allocated over $2.5 billion to 26.9 million advertisements in 2024 alone, marking a staggering increase in advertising across television, radio, and outdoor platforms since 2017. Television ad placements hit a peak in 2023, totaling 16.4 million — a 44% increase since 2017. Radio advertisements exceeded … Read more

Surge in Attorney Advertising and Third-Party Funding Raises Red Flags for Legal System Integrity, Experts Warn

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New York, NY – A recent report from the Insurance Information Institute highlights the booming rise in legal advertising across the United States and the substantial role of third-party litigation funding in shaping these trends. With attorney advertisements now a common sight, the industry reportedly spent over $2.5 billion on nearly 27 million ads in 2024. The surge reflects an ongoing shift in how legal services are marketed and funded. Data from the American Tort Reform Association reveals significant growth in advertising formats, including television, radio, and outdoor displays, particularly since 2017. Television ads reached … Read more

Supreme Court Decision Reshapes Landscape of Bankruptcy Law, Ending Non-Consensual Third-Party Releases in Chapter 11 Cases

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WASHINGTON — The U.S. Supreme Court recently delivered a landmark decision that shook the foundations of bankruptcy law, specifically addressing the contentious issue of non-consensual third-party releases. The court’s ruling in Harrington v. Purdue Pharma L.P. categorically denies the use of these releases under the U.S. Bankruptcy Code, except in asbestos-related cases. This decision not only has profound implications for future bankruptcy cases but also undermines a tool long used to settle mass tort litigations effectively. Previously regarded as an extraordinary legal maneuver, non-consensual third-party releases had become widespread in Chapter 11 bankruptcy plans, including … Read more

Supreme Court Blocks Nonconsensual Third-Party Bankruptcy Releases, Reshaping Chapter 11 Landscape

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Washington, D.C. — The Supreme Court has handed down a significant decision on June 27, 2024, that changes the landscape of bankruptcy law, particularly how claims against third parties are handled in Chapter 11 reorganization cases. The court ruled in a 5-4 decision across ideological lines, prohibiting the inclusion of nonconsensual third-party releases in Chapter 11 reorganization plans, a practice that had previously allowed for the discharge of claims against nondebtors without their consent. Justice Neil Gorsuch, writing for the majority, which included Justices Clarence Thomas, Samuel Alito, Amy Coney Barrett, and Ketanji Brown Jackson, … Read more