Manhattan institute reports on asbestos lawsuit scams

A new report from the Manhattan Institute’s Center for Legal Policy part of a series of reports called “Trial Lawyers, Inc.,” describes how some unscrupulous attorneys have turned to profiteering and “abusive litigation” involving asbestos. The Manhattan Institute’s report centers on the practice of using class action lawsuits to generate thousands of false asbestos claims. This practice, says the report, not only allows people to claim compensation falsely; it also means that people who are genuinely affected by asbestos-related diseases don’t get the compensation they need or deserve. The business of asbestos-related lawsuits began in the 1970s: since then, more than eighty companies have declared bankruptcy as a direct result of dealing with hundreds or thousands of lawsuits. Their insurers have paid more than $70 billion in asbestos-related claims. However, the report points out that of that $70 billion, attorneys received $19 billion and $21 billion went to pay court fees: only $30 billion actually reached the plaintiffs. The report says that some attorneys have set up asbestos litigation as a business with “sophisticated marketing to attract thousands of claimants,” and that attorneys “package claims together to overwhelm defendants and courts.” It criticizes attorneys that bully plaintiffs into accepting settlements that are more profitable for the lawyer than their client. In addition, says the Manhattan Institute report, “much of modern asbestos litigation has involved the filing of lawsuits by individuals who aren’t sick against companies that never made the product alleged to have caused their sickness.” That’s not to say there are no real plaintiffs-there are plenty of those. And most lawyers involved in these cases aren’t resorting to these types of dirty tactics. But the problem definitely exists. Asbestos litigation has gotten out of hand because plaintiff attorneys involved in class action lawsuits have begun advertising for people to join in those suits-but the attorneys aren’t always picky about whether or not all of the plaintiffs actually have asbestos-related diseases. There have even been cases where attorneys have paid doctors to read diagnostic x-rays and falsely diagnose people with asbestosis. Massive fraud was discovered in one case where U.S. District Judge Janis Graham Jack unearthed facts about plaintiffs suing for compensation for silicosis had already received compensation for asbestosis, a disease with an entirely different cause. Since 2003 the American Bar Association has supported federal legislation that would establish specific medical criteria for asbestos-related litigation. However, the Manhattan Institute report says even that may not be enough, as unscrupulous attorneys are always on the lookout for new ways to profit from asbestos-related claims. (Source: Asbestos and Mesothelioma News)