
Episode #106
Confronting Claimant Farming in Mass Tort Bankruptcies
When every mass-tort claimant has the same voting power, can bankruptcy still deliver a fair settlement? In this episode of Bite-Sized Business Law, we welcome Wake Forest Law Professor Samir Parikh and Fordham Law Professor Richard Squire to examine how claimant farming can distort mass tort bankruptcies. Samir is a nationally recognized expert in mass tort restructurings and editor-in-chief of the Bloomberg Law Bankruptcy Treatise, and Richard is an expert in bankruptcy and corporate restructuring. Together, they explain why the vote is meant to restore agency to victims and how the current system can undermine that promise. They discuss traditional voting rules and the nominal one-dollar valuation approach used when courts face tens of thousands of uncertain claims. Samir and Richard unpack how low-value or nonmeritorious claims, weak powers of attorney, and third-party litigation finance can combine to outweigh stronger claims. They also explore why bankruptcy remains attractive for mass tort resolution, where its safeguards are breaking down, and what courts and lawmakers can do before the next wave of claims arrives. Tune in to discover who benefits from the current system, who risks being left behind, and how mass tort bankruptcy voting can better protect the claimants who have suffered the most. Key Points From This Episode: Discover why voting is vital to claimant agency in mass tort settlements. Learn how Chapter 11 voting balances the number and value of claims. Explore why courts give mass tort claims a nominal one-dollar value. Uncover how courts determine whether claims are meritorious. Examine why claimants owed no recovery should be treated as rejecting a plan. Consider when attorneys have the authority to vote for their clients. Understand how third-party litigation finance can increase the number of weak claims. Hear about Samir’s proposed solutions for filtering claims and improving voting. See how claimants could challenge a decision under his proposed AI review process. Find out how bellwether trials could help courts value representative claims. Compare bankruptcy with multidistrict litigation and individual trials for resolving mass torts. Whether proposed legislation addresses the problems in mass tort bankruptcies. Links Mentioned in Today’s Episode: Samir Parikh Samir Parikh on LinkedIn Richard Squire Richard Squire on LinkedIn 'Mass-Tort Voting Takes Center Stage' Brook Gotberg on The Price of “Global Peace” in Purdue Pharma Brook Gotberg and Richard Squire on Purdue Pharma II Fordham University School of Law Corporate Law Center






