A recent study conducted by the American Tort Reform Association (ATRA) scrutinized the advertising expenditure of New York-based law firms, revealing that Morgan & Morgan topped the list in terms of spending on legal services advertisements. The report indicates that such extensive ad campaigns often lead to a surge in lawsuits, resulting in increased fees and payouts for attorneys.
According to the ATRA's findings, Morgan & Morgan invested an estimated $7,315,932 on over 34,000 ads. When it comes to advertising spending across New York state, Morgan & Morgan was trailed by William Mattar at $6,787,552 and Barnes Firm at $5,112,956. In New York City alone, law firms reportedly spent an estimated total exceeding $72 million on legal services advertisements in 2023. Across the entire state of New York, firms expended a total of $97 million - a figure representing a 10% increase from 2019.
The report discovered that two-thirds of these advertisements were from personal injury attorneys. Many ads centered around subjects like medical device and pharmaceutical claims. The ATRA noted that many of these ads are managed by aggregators who then sell potential plaintiffs' data to law firms. Consumers who encounter "doomsday" ads about medical devices or medications may sometimes discontinue their medical treatment without consulting their doctor - a decision which can lead to adverse events in some cases. The report pointed out that trial attorneys invest heavily in these ad campaigns because having more claimants allows them to secure larger settlements and earn bigger contingency fees.
According to a press release from the ATRA, costs arising from these excessive lawsuits impose an additional "tax" on every New York resident amounting to more than $2,300 each year. "Trial lawyers continue to pump significant money into these ad buys because, armed with more clients, they can boost settlements and payouts when they go after large corporations, ultimately raking in larger contingency fees for themselves," said ATRA President Sherman "Tiger" Joyce. Joyce added that these strategic campaign investments serve to maintain the status quo in their favor.
The ATRA, as described on its website, is a nationwide network of state-based legal reform groups. Established by the American Council of Engineering Companies in 1986 and later joined by the American Medical Association, the ATRA operates at both state and federal levels with an aim to ensure fairness in the civil justice system.