An annual report on securities class actions from Cornerstone Research indicates the median settlement amount increased 11%, and the proportion of settlements of at least $100 million climbed to nearly two-thirds of the total settlement dollars in 2023.
Tag: nuclear verdicts
U.S. Chamber of Commerce Research Shows Nuclear Verdicts’ Amount, Frequency Continue to Increase
Massive jury awards of $10 million or more—known as “nuclear verdicts”—continue to increase in size and frequency, according to a new study released today by the U.S. Chamber of Commerce Institute for Legal Reform.
Legal-System Abuse Hurts Insurers, Consumers: AM Best Interview with I.I.I. CEO
Sean Kevelighan, chief executive officer of the Insurance Information Institute, discusses how so-called nuclear verdicts, litigation funding and other legal-system abuse drive up claims costs and ultimately lead to higher premiums for consumers.
Corporate Verdicts Go Thermonuclear: Large Jury Awards Rise Nearly 30%
From rapper Flo Rida’s $82 million breach of contract case against an energy drink company to a nearly $1 billion sports car liability award against Mitsubishi, juries across the country in 2023 found corporate defendants liable for over $14.5 billion in “nuclear verdicts.”
Casualty Lines Back Front and Center Amid Social Inflation Crunch
After climate risks and property inflation pushed casualty insurance to the back burner somewhat, it’s returned to being “front and center” as the sector grapples with the impacts of social inflation and rising claim sizes, according to AM Best’s head of industry research.
Social Inflation Causing Auto, Home Insurance Rates to Jump
Consumers aren’t likely to see their insurance rates go down this year, according to a Morgan Stanley report. The last few years have been rocky ones for the insurance industry. Social inflation rose higher than traditional economic inflation.
Triple-I, CAS Quantify Social Inflation’s Impact on Commercial Auto
The phenomenon known as “social inflation” accounted for $20 billion in commercial auto liability claims between 2010 and 2019, a new study by Triple-I and the Casualty Actuarial Society (CAS) finds. Social inflation isn’t a new term. Warren Buffett used it in the 1970s to describe “a broadening definition by society and juries of what… Continue reading Triple-I, CAS Quantify Social Inflation’s Impact on Commercial Auto
Los Angeles Jury Awards Fired Insurance Executive $155 Million
A Los Angeles Superior Court jury handed a fired insurance company executive a verdict totaling $155.4 million – including $150 million in punitive damages. Plaintiff Andrew Rudnicki worked for Farmers Insurance Exchange as a senior executive and lawyer in its Claims Litigation division. Farmers claimed it terminated Rudnicki’s employment after he made sexist and inappropriate… Continue reading Los Angeles Jury Awards Fired Insurance Executive $155 Million
Swiss Re Says Third-Party Litigation Funding Drives Social Inflation, Should Be Regulated
Swiss Re in a recent report warned that third-party litigation finance (TPLF) is a major contributor to the trend of social inflation in the United States, which is affecting the price and availability of many insurance policies. According to Swiss Re, the United States is the epicenter of the world’s TPLF industry, in which investors… Continue reading Swiss Re Says Third-Party Litigation Funding Drives Social Inflation, Should Be Regulated
Two Trucking Companies Hit with $1 Billion Verdict in Death of Florida Teenager
Connor Dzion had only attended two weeks of classes at the University of North Florida in 2017 when a distracted semi-truck driver slammed into a line of cars on Sept. 4. Dzion had been in standstill traffic for over an hour on Interstate 95 near Yulee because another semi-truck driver had flipped his vehicle ahead… Continue reading Two Trucking Companies Hit with $1 Billion Verdict in Death of Florida Teenager