Anthony Anastasio, president of the New Jersey Civil Justice Institute (NJCJI), spoke to the New Jersey Law Journal about the impact of third-party litigation funding on mass tort cases in New Jersey. According to Anastasio, plaintiffs’ lawyers are increasingly relying on money from third-party investors to finance mass marketing campaigns. These campaigns aim to persuade consumers that they are victims of allegedly defective products and entitled to compensation.
Anastasio explained that the scale of these marketing efforts can lead to a large number of claims being filed. This volume may pressure targeted businesses into agreeing to substantial settlements in order to avoid high litigation costs.
Last year, NJCJI advocated for the United States District Court for the District of New Jersey to implement disclosure requirements concerning third-party litigation funding in mass tort cases. Following this initiative, disclosures have revealed that such funding is present in these types of lawsuits.
"Plaintiffs’ lawyers increasingly use third-party investors’ money to pay for mass marketing campaigns to persuade consumers that they are victims of alleged defective products and are entitled to compensation. In turn, the sheer size of these campaigns can result in a torrent of claims and force the targeted businesses into massive settlements to avoid the high cost of litigation," Anastasio said.
