Impact of BP $20 Billion Fund on Oil Spill Litigation

BP's agreement to set aside $5 billion per year for the next four years is likely to deter some litigation, according to an article titled "Claim Fund Offers Shield from Suits" in today's Wall Street Journal. Here's an excerpt:

Some of the plaintiffs may now end up dropping their suits—or never file suit in the first place—and tap the fund, which would save them from paying big attorneys fees. "They're going to have to think about this," said Richard Nagareda, a law professor at Vanderbilt University. "The fund promises a much faster payout."

"Make it Right," BP's commitment to restoration, recovery, and reimbursement has 900 people devoted to handling claims on a 24/7 basis in over 25 locations. This easy access to the claims process undermines the need for actions that would otherwise be filed in court.

Of course, oil is still spilling and the magnitude of damages in terms of duration and scope remain to be seen.

Plaintiff Legal Marketing in Millions at Leading Firms

Sokolove Law LLC has a $12 million annual digital marketing program, according to today's Wall Street Journal. The firm has a 20 person Internet marketing team.

Plaintiff's law firm Parker Waichman Alonso LLP also maintains 20 technology specialists who maintain the firm's 300 websites, according to the same article. The firm now spends $1 million of its $3 million annual marketing budget on online marketing.

Nowhere is this shift to social media and Internet marketing more apparent than with the BP Oil Spill litigation. As covered in earlier blog posts, plaintiff firms are aggressively using blogs, webinars, web sites, and online PR to attract online traffic.

It must be paying off. "The folks who reach us through social media are twice as likely to become clients as those who would reach us through television or print," says Michael Skoler, chief marketing office for http://www.yaztalk.com/, a website of Sokolove Law.

Defense firms, are you listening? Traditionally slow to respond with Internet marketing, now is a good time to put the Internet to use for blogs, online articles, white papers, and more.

This Rainmaking Lady is available to discuss BP oil spill litigation marketing for plaintiff or defense firms.