Boston, Massachusetts – When mass tort lawsuit advertisements appear on TV screens, many consumers are quick to change the channel. However, according to Rustin Silverstein, president and founder of legal services company X Ante, it may be unwise to ignore these ads, particularly for those in the insurance industry.
Silverstein believes that the surge in attorney advertising promoting mass tort lawsuits requires attention. In a recent webinar hosted by the Travelers Institute, Silverstein revealed that lawyers and others spent an estimated $1.2 billion on TV ads last year. More than 16 million advertisements ran in total, creating what Silverstein describes as an “unceasing onslaught.”
The figures are staggering. Roughly 45,000 TV ads by lawyers and others were broadcast across the United States daily. This breaks down to around 1,900 ads per hour or one lawyer ad airing every two seconds. General auto accidents, slip and fall incidents, and personal injury cases accounted for approximately $1 billion in spending. Another $152.3 million was spent on more specific topics, such as prescription drugs, medical devices, and natural disaster insurance claims.
Silverstein emphasizes that these advertisers are constantly shifting their focus to target the most lucrative cases. They monitor what generates quality leads and clients, investing in advertising accordingly. Positive developments in litigation only fuel their interest in advertising.
The financial incentives for placing these ads are significant. Plaintiff firms collect between a 25% and 40% contingency fee from the rewards or settlements they receive. In the past decade, around 2,000 advertisers have sponsored mass tort ads. However, only 15 of these advertisers account for half of all the ad spending. Notably, one-third of the top spenders are not law firms but for-profit lead generation companies that sell claims to law firms. Third-party litigation financing is also on the rise due to its high returns.
According to Silverstein, these advertisements not only generate numerous lawsuits but also put pressure on insurers and defendants to settle cases due to the high cost and potential damage to their reputations. Needless to say, repeated exposure to ads about a company can affect consumer perception, impacting their bottom line and stock shares. The influence of these ads extends to influencing jury members’ perceptions of what is a fair outcome.
Tracking mass tort advertisement data provides valuable insights for insurance industry professionals. Silverstein points out that these ads can serve as an early warning system, indicating potential policyholders’ vulnerability to litigation before lawsuits are even filed. They can also help predict claim volumes and identify the individuals and locations behind the lawsuits.
When it comes to the impact of artificial intelligence (AI) on ad targeting, Silverstein believes AI will streamline the client intake process and allow for tailored messaging. AI can help attorneys compete in the never-ending race for clients and introduce new technologies.
In the webinar, Stef Zielezienski, executive vice president and chief legal officer of the American Property Casualty Insurance Association, highlighted the success of legal reforms in Florida as an example of a positive outcome. These reforms aimed to decrease frivolous lawsuits and prevent predatory practices by trial attorneys.
In conclusion, Silverstein warns against ignoring mass tort lawsuit advertisements, as they can have far-reaching consequences. Staying informed about these ads can help businesses in targeted industries prepare to address issues as they arise. The relentless nature of these advertisements and their financial rewards make them a force to be reckoned with.