According to research from the American Tort Reform Association (ATRA), legal service providers spent more than $2.5 billion on 26.9 million ads in 2024 alone—with significant increases in television, radio and outdoor advertising since 2017.
The Insurance Information Institute (Triple-I) released an issues brief, “Legal System Abuse and Attorney Advertising for Mass Litigation: State of the Risk”, shedding light on the sharp rise in attorney advertising across the U.S., and the increasing influence of third-party litigation funding (TPLF) on the legal and insurance landscapes.
“Attorney advertising has become big business in the U.S., fueling explosive growth in the likes of multi-district litigation (MDL), which solicit anyone and everyone to join frivolous and expensive cases around anything from ear plugs to weed killer,” said Sean Kevelighan, CEO, Triple-I. “These ads, often bankrolled by litigation funders, create urgency and overpromise outcomes, drawing in claimants who might not have otherwise considered legal action.”
Research by Yehonatan Givati and Eric Helland shows a direct correlation between ad volume and plaintiff participation in MDL cases.
According to the research:
- TV ads peaked in 2023 with 16.4 million placements – a 44% increase from 2017.
- Radio ads surged to over 6.8 million in 2024 – a 261% jump from 2017 levels.
- Outdoor advertising, including billboards, rose by over 260%.
The groups said that while some of the overall rise in advertising spending (up 39% since 2020) can be attributed to increased digital costs, industry experts warn that the growing saturation of legal advertisements—often underwritten by third-party litigation funders—may be fueling legal system abuse, driving up insurance claims and delaying settlements.
TPLF, in which “dark money” investors finance lawsuits in exchange for a portion of the settlement or judgment, has become a major force behind the surge in mass litigation, according to the brief. The infusion of capital allows law firms to scale up legal efforts, including expensive and widespread plaintiff recruitment through advertising.
The economic potential of MDL, combined with the high upfront costs of pursuing them, makes them an attractive vehicle for funders. The 2024 Westfleet Insider report estimates that TPLF assets under management reached $16 billion, with approximately 74% of commitments allocated to legal budgets – expenditures that can include advertising for plaintiff acquisition and case aggregation.
“Third-party litigation funding adds fuel to the big business of law fire,” said Kevelighan. “By enabling broader reach and sustained legal action, TPLF may amplify systemic challenges, particularly in how insurers model risk and calculate premiums.”
Calls for Transparency and Reform
Attorney advertising and third-party litigation funding are reshaping the legal landscape. In response, stakeholders are urging policymakers to balance access to justice by preserving the integrity of the legal system. Without greater transparency and oversight, the combined impact of mass tort advertising and external funding could further strain insurers, raise premiums, and erode public trust in the civil justice system.
“Tripe-I continues to shine a light on legal system abuse, calling for more tort reform to wrangle in what’s become out-of-control tactics by billboard attorneys who are exploiting Americans and increasing costs for critical household products and services,” said Kevelighan.
SOURCE: Triple-I
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