Copy, paste, sue: How class-action lawyers turn morning news into cash

On Nov. 14, 2023, STAT News published an investigation into how a UnitedHealth subsidiary used an algorithm to shape the length of Medicare Advantage rehab stays. By the end of the same day, a class-action complaint against UnitedHealth was on file in federal court. It cited STAT reporting from its March and November articles repeatedly, in some circumstances adopting framing strikingly similar to that used by the journalists themselves. STAT then wrote about the lawsuit, and many involved touted it online.

Copy, paste, sue: How class-action lawyers turn morning news into cash

TL;DR

  • Class-action lawsuits are increasingly being filed on the same day investigative news articles are published.
  • Law firms, such as Clarkson Law, have been observed repeatedly citing news stories as the basis for their legal complaints.
  • This practice bypasses federal rules requiring lawyers to investigate claims independently before filing.
  • The pattern of "story, complaint, story about the complaint" creates a publicity cycle that can pressure defendants into settlements.
  • Funding relationships between organizations that fund health policy journalism and those involved in lawsuits are noted, raising transparency concerns.
  • The article argues for reforms to pleading rules, greater transparency in funding, and a clearer separation between journalistic investigation and legal litigation.