The billboard lawyer racket, and how to close it
You’ve probably seen the ads. Emotional pledges promising you’ll get all the money you deserve. Urgent warnings that a certain medication has been recalled with no more evidence than someone shouting at you to “get your money’s worth.”
TL;DR
- Billboard lawyers use class action lawsuits and mass arbitration to exploit the legal system for personal gain.
- In consumer financial protection class actions, attorneys average nearly $1 million per judgment, while victims receive only $32.35.
- Individual arbitration is presented as a faster and fairer alternative to lengthy court battles.
- Mass arbitration involves filing numerous identical arbitration demands simultaneously, triggering massive upfront fees for businesses.
- These exorbitant costs can force businesses to settle, regardless of the claim's merit, acting as legal extortion.
- The article advocates for reforms such as applying a bellwether process to mass arbitrations, reforming arbitration fee structures, and investigating ethical violations by state bar associations.
- Consumers ultimately pay the cost of meritless lawsuits through higher prices for goods and services.