"The plaintiff bar long ago turned mass torts into a business model, but never underestimate legal creativity.
The attempted looting of the Boy Scouts of America is highlighting the need for tort reform in a modern era of social media and lawsuit marketing.
BSA and its insurers have been working in good faith to settle those claims.
Which is why insurers owned by Chubb Ltd. and Hartford Financial Services are asking U.S. bankruptcy Judge Laurie Selber Silverstein to allow discovery into the methods of plaintiff lawyers who produced a 55-fold increase in new claims in less than a year.
You read that right.
Insurer court filings note that when BSA filed for bankruptcy, it was a defendant in 275 cases and had been notified of a potential 1,400 more.
BSA now faces 95,000 claims.
Behind this assault is a sophisticated new tort machine that leverages
- Wall Street litigation funding,
- third-party brokers to collect and
- commoditize claims, and
- sweeping online marketing that recruits and coaches claimants.
This is the new mass tort industry...Read all.
No comments:
Post a Comment