Starting a mass torts practice is a bold move for any law firm. It offers the potential for significant rewards but also demands a substantial investment of time, resources, and expertise. Unlike traditional litigation, mass tort cases involve handling claims from numerous plaintiffs, requiring meticulous coordination and robust operational systems.
To succeed, law firms must carefully weigh the costs of entering this complex field against the benefits, which include high-value cases and the opportunity to impact corporate accountability. However, success hinges on factors like choosing the right cases, building a skilled team, and ensuring adequate funding. This guide explores six key considerations that can help firms navigate the challenges and opportunities of establishing a mass torts practice.
Understanding the Mass Torts Landscape
Mass tort litigation stands apart from individual personal injury cases in scale and complexity. These cases often involve hundreds or even thousands of plaintiffs who have suffered similar harm due to defective products, pharmaceuticals, medical devices, or toxic exposure. Courts frequently consolidate these claims into multidistrict litigation (MDL) to streamline the legal process, making it easier to manage pretrial proceedings while retaining individual case outcomes.
Typical mass tort cases include claims related to defective medical devices, harmful drugs and chemicals like Zantac or Roundup, and large-scale environmental disasters. Unlike class actions, each mass tort plaintiff retains their own case, which adds complexity to settlement negotiations and case management. Law firms entering this space must understand the unique procedural requirements and logistical challenges of managing high volumes of similar claims.
How Can You Finance a Mass Torts Practice?
Financing a mass torts practice requires a strategic approach, as these cases involve significant upfront costs. Marketing, client acquisition, expert witness fees, and extensive administrative expenses can quickly add up. These cases also take much longer to resolve than single-event cases like car accidents. While a typical car accident case might take 2 years to resolve, many mass torts can take 4-to 6 years. Because of this longer time frame, the firms must budget so that they will not receive any funds from these cases for a much longer time. To navigate these financial demands, law firms can explore various funding options tailored to the needs of mass tort practices.
Attract Private Investors for Growth
Securing private investors offers law firms the capital needed to take on large-scale litigation while maintaining control over case strategy. By presenting a solid business plan with projected returns, firms can attract accredited investors looking for high-yield opportunities tied to successful settlements.
Balance Cash Flow with Case Portfolios
Maintaining cash flow during mass tort litigation is crucial. Firms can create a balanced portfolio of cases with staggered timelines, allowing settlements from earlier cases to fund ongoing litigation expenses for later cases. This approach minimizes financial strain and ensures operational continuity.
Partner Through Strategic Syndication
Collaborating with other law firms through co-counsel agreements can mitigate financial risk while leveraging shared resources and expertise. This partnership model allows firms to divide case-related expenses and pool their knowledge, enhancing the likelihood of favorable outcomes.
6 Things Every Law Firm Should Know Before Starting a Mass Torts Practice
Starting a mass torts practice is a strategic decision that requires thorough preparation and careful evaluation of key factors. From selecting viable cases to building efficient systems, these six considerations will help law firms navigate the complexities of mass tort litigation and establish a strong foundation for success.
Choose the Right Cases
Choosing the right cases is crucial to ensuring the success of a mass tort practice. Factors to consider include the strength of liability claims, the scope of potential damages, the solvency of defendants, and the quality of scientific or medical evidence supporting the case. Viable cases with strong legal foundations and clear causation are more likely to yield favorable outcomes and sustainable returns.
Firms should also diversify their mass tort docket by balancing higher-risk cases with more predictable ones. Maintaining a mix of early- and late-stage cases can help stabilize cash flow and mitigate financial risk, ensuring a steady pipeline of potential settlements.
Develop Effective Client Acquisition Strategies
Mass tort litigation often involves reaching a large pool of potential clients. Firms must implement ethical and effective marketing strategies, such as digital campaigns, partnerships with advocacy organizations, and traditional advertising, to engage affected individuals. Ensuring compliance with advertising regulations and clearly communicating case eligibility criteria is vital for maintaining trust and credibility.
Streamline the Client Intake Processes
Handling a high volume of inquiries requires streamlined and scalable intake processes. Law firms can efficiently screen potential cases, collect necessary information, and manage client communications using client intake software and automation tools. A well-organized intake process minimizes delays and ensures that viable cases are prioritized. Firms that use strict criteria for the cases they accept will ensure a lower dropout rate as the case progresses.
Secure Sufficient Financial Resources
Mass tort litigation comes with substantial upfront costs, including marketing, expert witness fees, technology investments, and administrative expenses. Law firms must secure reliable financing solutions, such as litigation funding, lines of credit, or strategic partnerships, to support these expenses while maintaining operational stability.
Build a Skilled and Scalable Team
Success in mass tort litigation depends on assembling a team with specialized skills. This includes experienced trial attorneys, paralegals, data analysts, and client relations staff who can manage the unique demands of large-scale litigation. Creating a scalable team structure also ensures the firm can handle increasing caseloads as the practice grows.
Implement Scalable Systems for Efficiency
Mass tort cases involve managing thousands of documents, client communications, and case files. To handle these complexities efficiently, firms must invest in scalable technologies, such as advanced case management systems, data analytics tools, and automated workflows. Scalable systems enhance productivity and reduce the risk of errors in managing high-volume litigation.
Biggest Challenges of Launching a Mass Torts Practice
Mass tort litigation offers high-reward opportunities, but it also comes with unique challenges that can strain a firm’s resources, delay financial returns, and increase operational complexity. Firms must prepare for these obstacles to build a sustainable and profitable practice.
Long Litigation Timelines and Delayed Payouts
Mass tort cases often take years to resolve, with settlements and verdicts subject to appeals and lengthy negotiations. Firms must be prepared to sustain operations during extended periods with no immediate financial return, making financial planning and strategic funding essential.
Uncertain Case Viability and Market Shifts
Even well-researched mass tort cases can face unexpected setbacks. Defendants may file bankruptcy, scientific evidence can be challenged, or regulatory changes may weaken claims. Firms must continually reassess case viability and adjust their approach to minimize wasted resources.
Heavy Administrative Burdens
Managing thousands of clients, tracking case developments, and coordinating discovery across multiple jurisdictions requires an advanced administrative system. Firms risk inefficiencies, missed deadlines, and costly errors without strong operational processes and technology.
High Competition and Rising Acquisition Costs
The mass tort space is highly competitive, with firms investing heavily in marketing and client acquisition. The cost to acquire qualified plaintiffs is rising, making it critical for firms to optimize marketing budgets and intake efficiency to ensure a strong return on investment.
Complex Settlement Structures
Settlements in mass tort cases are rarely straightforward. Firms often have to negotiate tiered compensation models, structured payouts, and claims administration processes. Effective settlement planning ensures smooth case resolutions and maintains client satisfaction.
For firms seeking litigation financing solutions, Remo provides funding designed specifically for mass tort practices. Whether covering case acquisition costs, litigation expenses, or operational overhead, Remo helps law firms secure the capital needed to sustain long-term litigation without putting undue strain on cash flow.
Ethical Considerations in Mass Tort Advertising
Effective marketing is essential for acquiring clients in mass tort litigation, but firms must ensure their advertising strategies comply with ethical and legal standards. Misleading or aggressive tactics can damage credibility and lead to regulatory penalties.
Maintain Ethical and Transparent Messaging
Mass tort advertising often involves sensitive topics such as personal injuries and wrongful deaths. Firms should avoid sensationalism and respect the dignity of affected individuals. Clear communication about case expectations is crucial—promising guaranteed settlements or exaggerated success rates can mislead potential clients and create unrealistic expectations. Accuracy in presenting settlement figures and legal outcomes is essential to maintaining trust.
Comply with Legal and Bar Association Regulations
Law firms must follow strict advertising guidelines set by state bar associations and federal agencies like the FTC. This includes providing proper disclaimers on success rates, avoiding misleading statements about legal fees, and ensuring marketing materials align with compliance standards. If working with third-party marketing partners, firms should verify that lead generation practices meet ethical and regulatory requirements.
Invest in Responsible Advertising Practices
Partnering with external marketing vendors can help firms reach potential clients, but outreach efforts must be responsible and transparent. All client acquisition methods should comply with TCPA phone and digital communications regulations. Lead generation must be conducted ethically without pressuring or misleading individuals into signing up for legal representation. Additionally, thorough documentation of advertising campaigns is necessary to ensure compliance and protect the firm from regulatory scrutiny.
A well-executed, ethical marketing strategy builds trust with potential clients and strengthens a firm's long-term reputation in mass tort litigation.
Bottom Line
Starting a mass torts practice is a significant investment that requires strategic planning, financial preparation, and a strong operational foundation. From selecting the right cases to implementing advanced technology and ethical marketing practices, success in this field depends on a firm’s ability to navigate the unique challenges of mass tort litigation.
While the hurdles can be substantial—such as managing high upfront costs and building scalable systems—thoughtfully addressing these considerations can position a firm for long-term growth. A well-prepared mass tort practice improves client outcomes and establishes a sustainable and profitable model in one of the legal industry's most dynamic practice areas.
FAQs
How do I choose the right partners or vendors for a mass tort practice?
Choose partners and vendors with proven mass tort experience, strong ethical practices, and a track record of success. Ensure co-counsels, marketing agencies, and funders align with your firm's goals and values. Transparent communication and clear agreements are essential.
What role does co-counsel play in mass tort litigation?
Co-counsels provide additional expertise, resources, and jurisdictional reach. They assist with evidence gathering, research, and client management while sharing the financial and administrative burden of large-scale litigation.
What are common red flags when evaluating mass tort cases?
Red flags include weak evidence of liability, unreliable scientific data, defendant insolvency, and cases with unrealistic settlement expectations. Proper due diligence ensures you avoid unviable cases.
How is mass tort litigation different from class actions?
Mass torts involve individual claims with unique settlements, often managed through multidistrict litigation. In contrast, class actions group plaintiffs into a single case with a shared settlement distributed evenly among participants.
