i’ve seen so many ads asking ordinary to call a number to claim cash due to companies liability or medicare. For example, i will see ads for class action lawsuits against chrysler and how they have faulty head rests. The ad asks for ppl to call the number if they think they qualify. are these scams? why are these ads so ubiquitous?
In: Economics
Because the amount of money involved can be staggering. The law firm or attorney who is heading the class action lawsuit stands to make an enormous payoff if the lawsuit results in a settlement.
Since a class action lawsuit can’t succeed without plaintiffs, the attorney pays for ads on television or radio to start raking in people who *think* they qualify (if you or a loved one has been diagnosed with…) and then screening them out until you’re left with individuals who have suffered qualifying damages or are otherwise eligible for inclusion in the lawsuit. These are the plaintiffs you take to trial.
The ads are just an efficient way to tell the public of the lawsuit, and incentivize them to come forward, in hope that they receive a settlement. In actuality, settlements are usually very small when divided among thousands or even millions of plaintiffs, but the attorney who led the lawsuit normally gets the biggest piece.
Latest Answers