Gerard Scimeca | Consumer Action for a Strong Economy
Gerard Scimeca | Consumer Action for a Strong Economy
As a surge in mass tort cases moves through the legal system, Gerard Scimeca, co-founder and chairman of Consumer Action for a Strong Economy (CASE) said that resolving these cases swiftly would be in the best interest of the claimants.
"By wrapping up the litigation process, claimants can return to their regular lives without the stresses of legal pressures," Scimeca wrote in a recent DC Journal op-ed. "What solidifies this plan even more is that most attorneys representing claimants have nodded in support."
"The plan is the best path forward for these claimants, allowing them complete transparency and restoring trust in our legal system," he said. "By providing a clear path forward, the plan helps stabilize their financial futures, which can have positive ripple effects throughout our economy."
Scimeca addressed recent developments in the lawsuit against Johnson & Johnson over claims that trace amounts of asbestos in their baby powder products caused harm to consumers. J&J’s Texas-based subsidiary, LTL Management, is currently facing more than 61,000 lawsuits from consumers alleging health risks associated with the products.
These cases have been some of the largest and most expensive of their kind, and attorney fees for these cases can be as high as a third of the final payout.
"In the case of Johnson & Johnson, the company has offered multiple options to claimants looking to settle out of court rather than continue costly legal battles that could result in fewer rewards for those harmed," Yaël Ossowski, the deputy director for the Consumer Choice Center (CCC) wrote about the topic in a Dallas Express op-ed. "The latest settlement would be a combined $6.5 billion paid out over 25 years to those who were diagnosed with ovarian cancer," but due to large tort firms having interest in these payouts, the cases have continued.
"Over the last decade, mass tort lawsuits have exploded in the U.S., with many cases being brought against companies operating in the healthcare sector,” Kasia Mulligan, national spokesperson for Patients Come First (PCF) said in a column on RealClearPolicy. “According to a Wall Street Journal news report, the number of federal civil cases increased almost a quarter from the year prior.”
“Litigation of this nature has sometimes served to hold bad actors accountable and ensure just compensation for victims,” she said. “However, the unfortunate reality is that the recent surge has largely been driven by frivolous lawsuits, with some private-equity firms and hedge funds joining in on the action, loaning out billions to law firms to fund litigation and for ad time with the expectation of a return on their investments. While these cases may intend to benefit patients, they end up hindering progress, causing patients to ultimately bear the brunt of lost innovation."
Gerard Scimeca is the co-founder and current chairman of Consumer Action for a Strong Economy. He is also a licensed attorney.