Mass Torts: A Saturated Market Where Data is Key
18/04/2024
Mass torts and class actions both involve multiple plaintiffs who have suffered harm from the same defendant due to a common product, action, or occurrence. However there is one main difference between the two. In mass torts each plaintiff maintains an individual claim, and in class actions plaintiffs are represented collectively as a class. That said, mass torts often involve similar issues of fact and law, so they are typically consolidated for pretrial proceedings to streamline the litigation process.
Mass torts commonly arise in cases involving defective products, pharmaceuticals, environmental disasters, and other situations where numerous individuals are affected by the actions or negligence of a single entity or a group of entities. Examples of mass tort cases include lawsuits against manufacturers of dangerous drugs, medical devices, or chemicals that cause widespread harm to consumers or the environment.
Due to the complexity and scale of mass tort litigation, they often require extensive coordination among plaintiffs’ attorneys, defendants, and the court system.
MTMP Spring 2024 Conference
A few weeks ago I was part of the Darrow team attending the Mass Torts Made Perfect (MTMP) Spring 2024 conference. Surrounded by many of the top mass tort litigators (and some personal heroes), it was truly remarkable to be amidst such a gathering of legal expertise. It was exciting to be a part of this dynamic environment and gain from the invaluable opportunities for learning, networking, and collaboration within the legal industry.
Below are my key takeaways from the conference:
1. The mass tort market is very saturated
Thriving in such a saturated environment demands not only a competitive strategy but also a profound understanding of consumer behavior, interactions, and evolving trends. With every legal competitor shooting for a piece of the action, innovative approaches for acquiring new business have become increasingly important. In this dynamic ecosystem, businesses must leverage comprehensive data analytics, personalized marketing strategies, and seamless client experiences to secure their foothold and emerge as industry leaders, in order to navigate this market.
2. The early movers’ advantage does not come without risks
The mass tort industry can present an early mover advantage, but this comes with risks in itself.
Identifying a viable mass tort “trend” is incredibly difficult, as it often involves confidential information that requires extensive research, and experimental studies to determine the true causes of harm. Recognizing an emerging issue before others can be a valuable edge, but the process of gathering the necessary evidence and establishing causation is time-consuming, cost-intensive, and straight up risky.
Once a mass tort trend has been firmly established, the race is on for attorneys to connect with affected clients, fight for their justice, and secure a portion of the potential settlement or judgment. This can be an extremely expensive endeavor, with the cost per connecting with an affected victim reaching into the tens of thousands of dollars. However the competition to be among the first to file suits and lock in clients can be fierce, requiring substantial upfront investments with no guarantee of a favorable outcome.
3. Data, data, data
Mass tort litigators are increasingly hungry for data as they look to capitalize on new mass tort “trends.” When a new mass tort emerges, such as a spike in cases of cancer due to exposure to a specific chemical, pesticide, or even food, there is a finite pool of potential plaintiffs to represent. Therefore attorneys are eager to quickly identify these emerging mass tort trends and take on cases before the victim pool is exhausted. However as discussed above, being an early mover has its own risks. By leveraging data, attorneys can more effectively and efficiently identify potential claims that are likely to be successful, connect with clients, and build robust cases, to bring justice to those affected.
This data-driven approach allows mass tort litigators to move swiftly and strategically. Rather than waiting for victims to come to them, or follow a trend, they can proactively seek out new cases and connect with potential victims. The data gives them visibility into the potential scope and scale of an issue, allowing them to understand the size of the addressable market and make informed decisions about strategy moving forward. In a highly competitive landscape, access to comprehensive, up-to-date, and even preliminary or early stage data is a critical advantage that mass tort attorneys are increasingly seeking to gain an edge.
4. Marketing is expensive
Firms are allocating and spending millions of dollars on marketing initiatives in order to connect with potential victims for mass torts. However as competition in the mass tort world has intensified, so has the cost of marketing and attorneys are keen to optimize the efficiency of these operations to ensure their business continues to be sustainable and successful, in order to continue being able to fight for justice for victims.
Efforts to lower the expense of acquiring new business not only contributes to the financial health of law firms but also enhance accessibility to legal representation for individuals affected by mass tort incidents. By streamlining marketing processes and adopting cost-effective strategies, firms can extend their reach to a broader audience of prospective clients while simultaneously curbing unnecessary expenditure. This shift towards more efficient marketing practices fosters a more equitable legal landscape.
Driving innovation
MTMP Spring 2024 highlighted the vast potential for enhancing the landscape of mass tort litigation. From improving access to critical data, to revolutionizing collaboration among attorneys, and providing more efficient and cost-effective marketing solutions, the conference emphasized the imperative of innovation in navigating mass tort cases.
Legal tech companies, such as Darrow, have tremendous opportunities to bring innovative solutions that address these pain points, and provide attorneys with the tools to discover data-driven mass tort trends early on, and connect with victims more efficiently.