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Day: December 18, 2019

Tort lawyer tries to extort $200 million, gets burned

We’ve written before that there is a significant problem with bogus lawsuits and unscrupulous tort lawyers in our country. That’s why we launched time4legalreform.org, to track many of these cases.

Often, large tort legal firms will put advertising to rack up plaintiffs for class-action lawsuits against companies who’ve been accused of some wrongdoing, either rightly or wrongly.

Sometimes, there is collusion between plaintiffs’ attorneys and scientific authorities who conjure up “expert” testimony to use in court. We covered that in our video on IARC, the International Agency for Research on Cancer.

This week, a startling arrest has once again proven that we need legal reform in this country.

In an action filed on Monday, a Virginia-based attorney is accused of trying to extort a global chemical company out of $200 million, claiming he’ll tarnish their reputation, cause a “40% stock loss” and start a monumental “public relations nightmare”.

It is alleged that attorney Timothy Litzenburg “approached a global company in October and threatened to make public statements claiming that it had significant civil liability for manufacturing a supposedly dangerous chemical used in Monsanto’s Roundup weedkiller,” according to Law360.

He was arrested by authorities for attempted extortion and interstate threats, presumably against Bayer (Monsanto’s parent company), who he is pursuing in many court actions. His firm represented the plaintiff who won a $289 million verdict against Monsanto in August 2018, a verdict that was later reduced to $78 million.

This case is similar to that of Michael Avenatti, the one-time Trump foe who was arrested and charged for attempting to extort Nike out of over $20 million. He has since been charged with fraud as well, accused of embezzling even more millions from his clients.

Glyphosate, the chemical compound in Roundup, has repeatedly been proven in hundreds of studies to not be carcinogenic, including the FDA. But that hasn’t stopped lawyers from weaponizing to the court system to overturn science.

Litzenburg is, of course, innocent until proven guilty, but if the allegations are true, it’s just another case that proves our legal system is being used and abused. That’s why we need #legalreform now.

We can’t afford to continue to allow bogus lawsuits and unscrupulous lawyers to completely change public policy and public opinions on science.

As Predicted, California’s Gig Economy Labor Rules Are Already Backfiring

Back in September, the state of California passed AB5, the law requiring all companies using contract workers in the state to treat them as employees.

Labor activists and unions were insistent that this law was necessary to provide security and stability to the thousands of contractors and gig economy workers throughout the state.

At the time, we warned it would be very harmful both for consumers and contractors. Our comments were featured in a Mashable article, as well as hosted on our website. Now, it seems it panned out, unfortunately.

Because of the stricter regulations on companies based in the state, various media outlets have announced they would be laying off thousands of freelance and contract workers they can no longer afford to employ.

Specifically, Vox Media, who called the law a “victory for workers everywhere“, announced it was parting ways with all of its California-based freelancers.

The layoffs are, of course, unfortunate. No one supports large and systematic firings, and certainly not in the news media, a vital industry to our democracy. But the economic trends in journalism have been negative for several years.

However, at the same time, it’s important to note that these kinds of laws, those that seem the most well-intentioned, actually end up having very detrimental effects.

That’s a lesson for practically every piece of legislation, and why we will continue to be active at the Consumer Choice Center. Laws have consequences that are very real and impact people’s lives.

Let’s hope California can clean up its act and allow freelancers and contractors to make a living without too much interference.

Consumer Choice Center Launches 21Democracy Project to Counter Authoritarian Influence

Consumer Choice Center Launches 21Democracy Project to Counter Authoritarian Influence

Washington, D.C. – Today the Consumer Choice Center is announcing a new initiative aimed at countering the influence of authoritarian regimes on consumers around the world.

The goal of 21Democracy is to highlight the risks for consumer choice, privacy, human rights, national security, and intellectual property in the light of rising authoritarianism across the globe.

“The narrative of authoritarian regimes unduly influencing consumers and policies in liberal democracies is ongoing and we must be persistent in opposing it where possible,” said Yaël Ossowski, deputy director of the D.C.-based Consumer Choice Center.

“Whether it’s the actions of Putin’s Russia or the Chinese Communist Party, we cannot compromise the underpinnings of our liberal democratic systems in the face of authoritarian regimes.”

Articles on this theme have already been published in Politico EU and La Tribune.

Specifically, the Consumer Choice Center is deeply concerned about the threat the Communist Party of China (CPC) poses to consumers, particularly invasions of their privacy and intellectual rights. 

Too many western politicians and media figures have turned a blind eye to the threat that some Chinese companies, often de facto controlled by the Communist Party, pose to their constituents.

While we acknowledge the importance of global trade as a driver for consumer choice and prosperity, we also see the risk of this principle being hijacked by bad players. (Self-)Censorship in western movie productions and 5G networks being controlled by an authoritarian surveillance state are just two worrisome examples. 

Liberal democracies such as the EU, Canada, and the United States need to find a common approach to protect citizens from the rising influence stemming from authoritarian players such as communist China.

21Democracy aims to serve as a networking, awareness, and activation platform for combatting this threat to freedom. We will speak up when others stay silent, we build bridges between policymakers, business leaders, and government from liberal democracies, and we will lobby for policies that preserve freedom and individual liberties.

To begin these efforts, the Consumer Choice Center joined activists from Students For Liberty in Miami at the Atlanta Hawks vs. Miami Heat game last week to protest the NBA’s silencing of dissent of its athletes and coaches when it comes to the ongoing protests in Hong Kong. 

They chanted in solidarity with the pro-democracy protesters in Hong Kong and spoke with fellow attendees to disapprove of the league’s position on political dissent in Hong Kong.

More information about 21Democracy can be found on the website 21Democracy.com.

CONTACT:
Yaël Ossowski
Deputy Director
Consumer Choice Center
yael@consumerchoicecenter.org
###

The Consumer Choice Center is the consumer advocacy group supporting lifestyle freedom, innovation, privacy, science, and consumer choice. 

We represent consumers in over 100 countries across the globe and closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

Confronting Slanted Journalism on Talc Litigation

When does investigative reporting cross the line into subjective advocacy? Can the coverage of high-stakes civil litigation improperly tip the scales of the legal process toward one of the parties involved? What duty of transparency do reporters owe the public when active litigants are selectively providing much of the source material and narrative framing for stories about ongoing cases?

These are just some of the troubling questions that are raised by the reporting in outlets like Reuters and the New York Times on lawsuits involving talc products made by companies like Johnson & Johnson.

In cases with such large potential impact – on public health, investors, legal precedent, and reputation – the bar for standards like objectivity, accuracy, balance, and sourcing ought to be at its very highest. But instead of sober analysis, reporting on these cases often blows through those guidelines in headlong pursuit of garish and slanted pieces that might as well have been written by the publicists for plaintiff’s attorneys. Tough questions are one thing but willfully distorted reporting is something else, especially when it misleads the public about key elements and serves a hidden agenda that is being concealed from readers.

Let’s start with the simple and easily verified fact that the talc products have been tested for impurities repeatedly and exhaustively over and over again for decades by a laundry list of independent entities. Yet even that overarching truth gets mangled. Outlets like Reuters routinely wave it away with the rhetorical formulation that “Johnson & Johnson points to studies it says…” See the sleight of hand? Reuters misleads its readers to believe these reviews aren’t objectively and independently true. Instead, Reuters insinuates these are just interpretations made by the company.

That underhanded trick also enables reporters to avoid including any of the authoritative sources that affirmed the safety. Why rely on empirical evidence or consensus findings when there’s an outlier study with hypothetical conclusions that can be cited? That’s facile and it enables reporters to elide the central question that’s at issue: do the plaintiff’s claims have a hard scientific basis?

This kind of macro omission is often used in concert with narrower, specific omissions to create the appearance of controversy or ambiguity where there is none. Take one example: In a long article, Reuters notes that in the 1970s, a researcher claimed to find “a relatively small” amount of asbestos in J&J talc. But Reuters does not tell you he re-tested and found none. Independent microscopists also tested the same lot that the researcher used and found that he was mistaken in his findings and that the samples tested did not, in fact, contain asbestos.

This tilted framing is a variation on the idea of “false equivalence” that media ethicists have long lamented in public affairs reporting. The Flat Earth Society doesn’t deserve the primary or even equal voice in news reporting, that argument holds, because the contrary evidence is so overwhelming and obvious. Yet the outlandish claim that J&J has knowingly poisoned women and children for decades, targeting minorities especially, has not only been touted by Reuters and NYT but trumpeted by those outlets on social media and through their publicity departments.

Pretending that News is Breaking

Let’s look closer at how the Plaintiff’s attorney Mark Lanier has co-opted reporters at Reuters and the New York Times. In one recent example, Reuters reporter Lisa Girion took spoon-fed material from plaintiff’s attorneys claiming that Johnson & Johnson “knew for decades that asbestos lurked in its baby powder” and then touted it as “reported here for the first time.” But that’s false in two key ways. First, those memos actually reflect a diligent concern preventing the talc from being contaminated. Second, those memos aren’t newly discovered at all – they have been open exhibits in the public record at trials that took place months and sometimes years ago. The only revelation is that the plaintiff’s attorneys were able to co-opt Reuters into dressing them up when other news outlets had rightly discounted them.  

That deceptive technique of rehashing court exhibits as if they are breaking news was on display in yet another Reuters report that outlandishly declared Johnson & Johnson had “targeted” minorities as part of a malevolent scheme. But that allegation was actually rejected by the courts because of course advertising to specific demographic groups is an entirely routine and perfectly appropriate part of marketing. In fact, the ad industry has an entire group dedicated to this socially vital practice, called the Alliance for Inclusive & Multicultural Marketing. Even though it was deemed unfit for a court of law and legally irrelevant, the publicists for those trial lawyers simply rehashed the material for Reuters which happily parroted their argument.

The New York Times docuseries The Weekly also took the bait. Over the 27-minute episode, plaintiffs’ attorneys and experts are given more than 9 minutes of screen time, including Lanier dramatically staging a scene for reporters interviewing him in his Houston office. File boxes filled with documents from Johnson & Johnson are stacked with dramatic thuds in front of reporters. The ruse works. The New York Times reports Lanier’s theory as verifiably true. Johnson & Johnson’s representative is given just under 3.5 minutes to defend the product and every claim is questioned by reporters along the way. None of the hundreds of independent experts who have confirmed talc’s safety are interviewed. 

Publicity as a Legal Cudgel

But why do the trial lawyers put such an emphasis on influencing the media and driving a narrative? Bloomberg’s Joe Nocera (no softie on big business) explained part of the strategy in a recent column. “For decades, ever since the trial lawyers realized that if they acted in concert, they had a high likelihood of landing a big payday, even if the facts were not on their side. This has become the business model for the plaintiff’s bar.” Nocera added, “Once the lawyers have a product in their sights, the next step — and this is key – is to find not just a handful of people who believed they’ve suffered harm as a result of using the product. They also need tens of thousands of ‘victims.’ How do they find them? By advertising.”

That’s why the free publicity that’s being provided by Reuters and the New York Times is so essential. It allows them to solicit additional members of a class action and at the same time, it helps validate the claims of the complaint in the eyes of prospective jurors.

The best perk of all, however, is how the cheerleading from the national press puts downward pressure on a company’s stock price. That’s leverage the trial lawyers then use to strong-arm a financial settlement. The day after the first Reuters story appeared, the plaintiff’s attorney Mark Lanier appeared on CNBC to brag about how his help to the reporters had caused a $40 billion drop in the company market cap. “I think this litigation can be resolved for much less than $40 billion,” Lanier crowed. “So [the article] serves my purposes as a litigant to say, ‘yes, get their attention, keep driving the stock down.”

Tune out the Skeptics

It doesn’t take a seasoned media critic to spot the holes in the reporting or the half-baked legal theory that supports it. Each piece from Reuters and the New York Times on the talc litigation has been thoroughly eviscerated by numerous readers that have expertise in fields varying from epidemiology, oncology, and medical research.

The media is complicit in the scheme. Reporters are no longer objective as they are angling for financial benefits the same as the trial attorney. Unless dramatic steps in transparency are taken by Reuters and The New York Times, their coverage and claims should be dismissed as fast by the public as they are by the court.  

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