New mass tort designations invite litigation tourism amid a brewing healthcare crisis in Philadelphia’s Court of Common Pleas, ranked the nation’s fifth-worst Judicial Hellhole® in the American Tort Reform Foundation’s latest report released today.
Philadelphia is a favorite venue for out-of-state plaintiffs, which ATRF says is evidenced by the designation of two new mass torts in 2025 — for hair relaxer products and baby powder litigation. A RICO lawsuit filed this fall against a local plaintiffs’ firm raises fraud allegations, which is just the latest concerning development, ATRF warned.
“When RICO lawsuits allege fraud, two new mass torts spring up overnight and nuclear verdicts® are the norm, you know the system is broken,” said Tiger Joyce, president of the American Tort Reform Association.
RICO Filing Flags Fraud
Philadelphia law firm Simon & Simon is facing fraud allegations after the firm was accused of teaming up with local doctors to exaggerate or fake injuries in accident claims to inflate case values. In a RICO suit filed in September, Uber alleged that the firm directed crash victims to specific doctors who allegedly drafted medical records and treatment plans, in some cases before examining the patient or using the same boilerplate language.
“When bad actors cheat the system, everyone pays the price,” Joyce said. “Fraud makes lawsuits more expensive for everyone and it contributes to the ballooning cost of litigation, higher bills, and increased insurance rates.”
Healthcare Liability Crisis
The largest medical malpractice verdict in Pennsylvania’s history — $207.6 million — was upheld this summer. ATRF warns of a brewing healthcare accessibility crisis fueled by a spike in medical malpractice filings in Philadelphia since 2022, sending medical liability insurance premiums through the roof. For many healthcare professionals, this makes the cost of practicing medicine in Pennsylvania financially restrictive, and in some cases, impossible.
“This surge in medical liability cases doesn’t just hurt healthcare providers – it hurts patients,” Joyce said. “When doctors can’t afford to practice due to the high risk of liability, patients face fewer options and reduced availability of healthcare.”
According to one judge, Philadelphia has become a “congested center” for medical liability cases with no connection to the city. These filings surged after a 2022 Pennsylvania Supreme Court decision opened the floodgates for forum shopping in the state.
“The medical liability crisis strains healthcare providers financially and is quickly leading to reduced options and resources for patients,” said Curt Schroder, executive director for the Pennsylvania Coalition for Civil Justice Reform. “Without reforms, families will bear the brunt of costs, especially in rural areas where hospitals and nursing homes are forced to cut services or close altogether due to the crippling legal environment. Legislators need to lock in and focus or risk losing healthcare access for vulnerable Pennsylvanians.”
Tort Tax and Economic Harm
A recent report found that every Pennsylvanian pays a $1,451 “tort tax” each year — or $5,804 annually for a family of four. Meanwhile, 163,115 jobs are lost across the state every year due to excessive litigation. If Pennsylvania enacted targeted reforms to curb lawsuit abuse, the state’s gross product would grow by $18.8 billion.
High-dollar, nuclear verdicts® exacerbate economic strain, ATRF says, and several record-breaking verdicts are now on appeal. This summer, Exxon appealed last year’s $725 million verdict from Philadelphia’s Court of Common Pleas; post-verdict, the judge added $90 million in delay damages, bringing the total to more than $800 million. The Pennsylvania Superior Court is also considering an appeal of a $1 billion verdict against Mitsubishi — the largest crashworthiness verdict ever awarded in the state.
Two New Mass Torts and a First
Philadelphia’s Complex Litigation Center long has been a nationwide magnet for traveling trial lawyers who flock to Philly’s courts with hopes of scoring a nuclear verdict®. This year, they added two new mass torts, which ATRF says is sure to attract more litigation tourism to the “City of Unbrotherly Torts” — hair relaxer products and baby powder.
A novel lawsuit targeting packaged food makers has been working its way through Philly’s courts over the last year. The first-of-its-kind lawsuit alleges that manufacturers of vaguely defined “ultra-processed foods” designed and marketed products in a way that is addictive to children, leading to a rise in chronic diseases.
The Pennsylvania Supreme Court dropped its Judicial Hellhole® title and is instead included on this year’s “Watch List.” The court helped rein in forum shopping but also placed new restrictions on arbitration agreements, which may lead to increased litigation for local businesses. Philadelphia’s Court of Common Pleas is No. 5 of eight Judicial Hellholes® ranked in the full report, available at JudicialHellholes.org.
