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Attorney warns private-equity aggregators and delay tactics may be driving claim volume and costs
Summary
An attorney representing victims told the committee that mass-market claim aggregation, delay tactics in defense litigation, reduced effectiveness of early-resolution programs, and insurer conduct are contributing to rising claim costs and complexity; he urged data collection before making policy changes.
Alex, an attorney who said he represents many victims of government negligence, told the committee he sees two central problems: widespread child abuse that systems have failed to prevent and a recent surge in historical child sexual abuse claims. He singled out private-equity-backed, mass-market claim aggregators and defense delay tactics as contributors to the volume and cost of litigation.
Alex said he lacks firm-level data but described industry practices and recommended that the committee obtain specific datasets (ERP resolution rates, assignment timing, case outcomes) before advancing policy proposals. "The vast majority of cases are not taken to trial," he said, adding that most cases end in settlement and that attorney fees commonly range from about one-third to as much as 45% in some matters.
