A recent report by the American Tort Reform Association (ATRA) reveals that lawyers in New Jersey spent $105.3 million on legal services advertisements in 2023. ATRA President Sherman "Tiger" Joyce attributes this to a strategy aimed at boosting settlements and payouts, which subsequently leads to larger paydays for the lawyers themselves. The report was released by ATRA on March 21.
According to the report, Morgan & Morgan topped the list of law firms in terms of advertising expenditure in New Jersey for 2023, with a total spend of $15.8 million. Gorayeb & Associates followed at $4.13 million, and Weitz & Luxenberg came third with an expenditure of $3.2 million. In addition to being the biggest spender, Morgan & Morgan also aired the highest number of ads in New Jersey, estimated at around 130,000.
Joyce expressed his views on this trend in a statement: "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." He further noted that these large advertising campaigns are another aggressive tactic employed by trial lawyers to solicit clients, often utilizing dubious claims. According to Joyce's estimation, each New Jersey resident pays an extra 'tax' of approximately $1,757 every year due to costs associated with these 'excessive' lawsuits.
The Law Offices of Jeffrey Hasson explains that attorneys working on a contingency fee basis typically take between 30% and 40% of a plaintiff’s award or settlement in New Jersey.
The report also sheds light on how law firms conduct their advertising campaigns - often through aggregators who sell new clients’ information to the firms. These campaigns have the potential to influence both consumers and juries. For instance, consumers exposed to 'doomsday ads' about a medication they have been prescribed might stop taking the medication without consulting their health care provider, leading to adverse health effects. Similarly, jurors can be swayed by advertisements to believe that if there is a lawsuit against a company over a product, the claims about the products are probably true.
ATRA, as per its website, is a nationwide network of state-based legal reform groups. It was established in 1986 by the American Council of Engineering Companies and later joined by the American Medical Association. ATRA operates at both state and federal levels to ensure fairness in the civil justice system.