Insurers implement game logic in the face of megaverdicts

The growing recognition of the potential downside of a jury trial is causing more general counsel to consider alternative dispute resolution. (Fotolia)Are the recent string of massive jury awards affecting how corporate general counsel approach litigation?

Awards such as the $8 billion verdict against Johnson & Johnson for Risperdal — which will be appealed, the company said — and the $2 billion Bayer AG/Monsanto Roundup weed killer verdict, later reduced to $86.7 million, have grabbed headlines. Unexpectedly large awards for injuries sustained in trucking accidents and the like also have made news recently. 

In June, the board of directors of Bayer, maker of Roundup, which also plans to appeal the big California verdict, established a new supervisory board committee to monitor current litigation including trial and mediation activities, consult with the management board, and make recommendations on litigation strategy. The company also retained products liability litigation expert John Beisner, partner and leader of the mass tort litigation group at Skadden, Arps, Slate, Meagher & Flom, to advise the supervisory board on glyphosate (Roundup) litigation, according to the company’s half-year financial report released in July. An email to Bayer for comment didn’t receive a response by deadline.