MIAMI, FL – Mass tort lawsuit advertisements may be alarming or annoying to some, but according to legal expert Rustin Silverstein, they should not be ignored, especially by those in the insurance industry. Silverstein, president and founder of X Ante, a legal services company, warns of the risks associated with neglecting these ads. The surge in attorney advertising encouraging consumers to pursue mass tort lawsuits was recently explored in a webinar hosted by the Travelers Institute, the public policy and education arm of Travelers Insurance.
During the webinar, Silverstein revealed that a staggering $1.2 billion was spent on TV ads by lawyers and others offering legal services or soliciting clients last year. With over 16 million advertisements aired in 2023, Silverstein aptly described it as an “unceasing onslaught.” The majority of the ads, about 45,000 per day, were related to general auto accidents, slip and fall incidents, and personal injury claims. However, there was also a significant amount, totaling $152.3 million, dedicated to advertising specific mass torts such as prescription drugs, medical devices, and natural disaster insurance claims.
Silverstein emphasized that these advertisers are constantly shifting their topics, focusing on what is most likely to yield lucrative cases. The financial rewards for plaintiff firms that place these advertisements are significant, with contingency fees ranging from 25% to 40% of the rewards or settlements received. Additionally, only 15 advertisers account for half of all the ad spending, and a third of these top spenders are not even law firms, but for-profit lead generation companies that sell claims to law firms.
While these advertisements generate thousands of lawsuits, they also put pressure on insurers and defendants to settle due to the high cost of litigation and the risk of reputational damage. Furthermore, the impact of these ads extends beyond lawsuits and settlements, influencing people’s opinions and potentially affecting jury decisions. Silverstein believes that the increasing costs of verdicts and settlements can be attributed, at least in part, to the influence of attorney advertising.
For insurance industry professionals, tracking mass tort advertisement data is crucial. It provides insights into potential litigation risks and can serve as an indicator of future claim volumes. By monitoring these ads, insurers can anticipate the lawsuits they may face and gain knowledge about the parties involved in the litigation. The ads can also reveal parts of the country that are particularly susceptible to advertising and tend to have high verdicts and awards.
While the effects of artificial intelligence on ad targeting are yet to be fully understood, Silverstein predicts that AI will likely streamline the client intake process for law firms and enhance the development and customization of their messaging. As attorneys constantly compete for clients, they are always seeking new technology and approaches to gain an edge in this never-ending competition.
Although the prevalence of mass tort lawsuit advertisements may seem overwhelming, Silverstein warns against ignoring them. Professionals in targeted industries should stay informed and prepared to address the issues that arise from these ads. As seen in Florida, where reform efforts were successful, proactive measures can be taken to counteract the effects of these advertisements and protect the interests of the insured.
In conclusion, the impact of mass tort lawsuit advertisements cannot be understated. With billions of dollars spent annually on these ads, their influence stretches beyond the legal realm, affecting insurance companies, defendants, and even the public’s perception. Staying informed and proactive is crucial for those dealing with the consequences of these advertisements, particularly in industries that are frequently targeted.