The national personal injury law firm Morgan & Morgan is facing a lawsuit filed on July 17 by attorney Jody Shackelford, who alleges that the firm’s "extensive advertising campaigns" constitute "unfair trade practices" that are misleading consumers and giving the firm an unfair advantage over other law firms.
Shackelford filed the lawsuit in the U.S. District Court for the Eastern District of Arkansas and said Morgan & Morgan’s ad campaigns violate both state and federal rules governing legal advertising, according to the complaint. "These practices cause substantial injury to consumers and competitors, including Plaintiff, by misleading consumers and diverting business from law firms that comply with ethical advertising standards," Shackelford said in the complaint.
According to a report from the American Tort Reform Association (ATRA), last year, Morgan & Morgan spent $15.8 million on ads in New Jersey. This spending resulted in approximately 106,437 ads that were aired across the state in 2023. Attorneys use these ads to attract more clients in order to win larger settlements and payouts. ATRA said in the report that these ads can sometimes mislead consumers, especially when the ads concern pharmaceuticals or medical devices. Consumers may stop taking medication without consulting their healthcare providers after seeing an ad about the medication, which has led to adverse and fatal health effects.
According to a report from the U.S. Chamber of Commerce Institute for Legal Reform (ILR), law firms engage in these ad campaigns in order to attract more clients to mass tort lawsuits so they can make more money for themselves. These ads can raise ethical concerns due to "misleading or fear-mongering" tactics, or by referencing "multi-million and billion-dollar settlements without mentioning the real amount plaintiffs got after the appeals process."
Munich Reinsurance reported that these advertising campaigns constitute a form of "legal system abuse," which is driving up costs for businesses and consumers. Each American household pays an extra "tax" of $3,621 due to the costs imposed by excessive litigation fueled by legal system abuse.
Morgan & Morgan specializes in personal injury litigation, including car and motorcycle accidents, product liability, and medical malpractice, according to the firm’s website. The firm has offices across the country, including in Jersey City.
