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By Pat Fogarty, VP, Assistant General Counsel & Director, Civil Justice Policy at AdvaMed
April 15, 2021

Originally published on Responsible Advertising for Patient Safety

Exposing the Litigation Financing, Advertising and Gaming Techniques that Are Threatening American Health Care

Medical device manufacturers are increasingly targeted by a mass tort generation machine of unprecedented size and scope. A too hidden network of financiers and claim generators fund TV, radio, internet, and social media ads to recruit large numbers of potential plaintiffs. The lawyers then leverage the sheer number of filings, regardless of the merit of each claim, into consolidated proceedings and pressure companies into mass “inventory settlements.” They are manufactured purely to feed a business model that takes advantage of the civil justice system.

This piece shines light on this mass tort generation machine against medical device manufacturers, explaining how it works and cautioning against the impact it is having on American healthcare.

Investment Capital Funds the Generation of Mass Tort Litigation

As the New York Times exposé How Profiteers Lure Women into Often-Unneeded Surgery found, mass tort litigation, particularly against medical device manufacturers, is now “fueled by banks, private equity firms and hedge funds.” These financiers inject huge amounts of investment capital into generating litigation, a new phenomenon that is responsible for the recent explosion of lawsuits over many medical devices and prescription drugs. They generate “immense” profits by funding mass marketing campaigns to recruit plaintiffs and lawyers to litigate the claims.

Third Party Litigation Financing, as this new financial sector is called, is a multi-billion dollar industry that is growing exponentially. There are now at least 30 firms dedicated to litigation financing, with start-ups regularly entering the market to finance personal injury, class actions, business disputes and other types of cases.

April 14, 2021

The medical technology community is made up of scientists, manufacturers, researchers, and engineers. Dr. Ajit Yoganathan is a unique combination of them all. Even so, Dr. Yoganathan – or Dr. Y to his colleagues and friends – would describe himself using an entirely different, but apt moniker: A conductor.

By Christopher White, Chief Operating Officer and General Counsel, AdvaMed; and DeChane Dorsey, Executive Director, AdvaMed Accel
March 23, 2021

The medical technology industry plays a pivotal role in improving the lives of people and communities across the world.  Medtech companies employ thousands of researchers on the frontlines of medical discovery, researchers who draw on astounding knowledge and creativity to tackle every health challenge imaginable, including the ongoing COVID-19 pandemic.

January 22, 2021

Last week, we celebrated an important CMS policy update: Under a new rule, called Medicare Coverage of Innovative Technology (MCIT), as soon as the FDA approves a new breakthrough technology, Medicare can cover that breakthrough technology. Today, in an op-ed in Morning Consult, AdvaMed President and CEO Scott Whitaker encouraged the Biden administration to work with our industry to implement and strengthen the rule, saying, “Too many seniors’ lives depend on it.”

October 30, 2020

We recently hosted more than 200 medtech leaders for our second annual Summit on Inclusion & Diversity. Special thanks to the ten industry leaders who joined us to lead these important and impactful discussions! Learn more about our work on inclusion and diversity.