May 14, 2026

Mass Torts as a Complement to—and Backstop for—Government Regulation

Subscribe to Our Newsletter

Newsletter


W. Tyler Perry

|

May 14, 2026

We tend to view regulation and litigation as wholly separate enterprises. But federal regulatory agencies have always operated alongside private civil litigation, with each supplying functions the other cannot. Agencies set prospective standards and monitor compliance at scale. Litigation responds to concrete harm, remedying often unanticipated—or minimized—risks. 


Prior posts in this series traced the procedural mechanics of mass aggregation—from the equitable origins of representative litigation through Rule 23 to the modern MDL—and explained why those mechanisms exist as a structural response to the access failures of bilateral litigation. This post addresses a related but distinct question: Why private enforcement matters not just as a substitute for bilateral litigation, but as a necessary complement to public regulation. This symbiotic dynamic has held for decades, and an examination of that history underscores the importance of mass tort litigation as a regulatory backstop.


The Structural Limits of Administrative Oversight


The relationship between regulatory agencies and private litigation is complementary rather than redundant. Even at full capacity, administrative agencies face structural constraints that limit their effectiveness as enforcement mechanisms.


The resource gap is the most straightforward. Regulated industries consistently outspend the agencies that oversee them. The pharmaceutical industry employs scientists, lawyers, and regulatory specialists whose collective depth of knowledge exceeds what any federal agency can match across its full portfolio of regulated products. An agency charged with monitoring thousands of products and reviewing hundreds of new applications annually necessarily operates with inherent informational disadvantages relative to the firms it oversees.


The capture problem is more subtle but no less significant. Regulatory agencies are staffed, in significant part, by individuals who move between government service and the industries they regulate. This is not an indictment of those individuals—it reflects the reality that domain expertise concentrates in the private sector. But it nonetheless creates structural pressures that shape enforcement priorities in ways that do not always align cleanly with public interests.


The latency problem is perhaps the most consequential. Pre-market approval is a snapshot, not an ongoing guarantee. An agency that approves a pharmaceutical compound based on clinical trial data cannot know what population-scale, long-term use will reveal. Post-market surveillance is resource-intensive and chronically underfunded. Harms that emerge years or decades after initial regulatory clearance may never trigger administrative enforcement action.


These are not new problems. They have characterized the administrative state for decades, and they are precisely why private litigation has long served as a necessary counterpart to administrative enforcement.  


The Opioid Crisis: What Happens When Regulation Falls Short


The opioid epidemic illustrates—at enormous human cost—what happens when regulatory oversight fails to keep pace with private-sector harm, and what private enforcement can accomplish when it fills the gap.


The FDA approved OxyContin in 1995 based on clinical data that did not capture the addiction potential of mass-market, long-duration prescribing. Regulators, empowered to act against manufacturers and distributors flooding suspicious channels, were slow to exercise that authority at scale. State medical boards, operating in an environment shaped by industry-funded campaigns redefining pain management standards, did not flag prescribing patterns that, in hindsight, were plainly problematic. By the time the regulatory apparatus mobilized a meaningful response, hundreds of thousands of Americans had died.


The tens of billions of dollars in settlements and judgments that followed came not through administrative action but through litigation—state attorneys general, municipalities, and private plaintiffs coordinated in MDL proceedings—that forced production of internal documents demonstrating what manufacturers and distributors knew and when they knew it. That information entered the public record through discovery. It informed subsequent regulatory responses, shaped public health policy, and produced one of the largest coordinated public health settlements in American history.  


PFAS and the Limits of Pre-Market Review


Per- and polyfluoroalkyl substances—PFAS, or “forever chemicals”—illustrate a different dimension of the same structural problem. Manufacturers possessed internal research suggesting health risks associated with certain PFAS compounds for decades before that information became public. The EPA, constrained by the evidentiary standards of the Toxic Substances Control Act and facing significant industry opposition, did not set enforceable drinking water limits for the most common PFAS compounds until 2024—roughly seventy years after their widespread industrial introduction.


Private litigation, brought by communities near manufacturing facilities, military bases, and industrial sites, has produced more actionable information about PFAS health effects than decades of administrative process. Discovery in PFAS proceedings has surfaced internal documents, epidemiological data, and risk assessments that were never voluntarily disclosed. Those materials have informed subsequent regulatory action and generated the factual record on which ongoing public health policy depends.


This is the information function of private litigation operating precisely as it should: Reaching into corporate decision-making in ways that administrative oversight either cannot compel or has not yet prioritized.


Social Media and the Enforcement Frontier


The current mass tort litigation against social media platforms for harms to adolescent mental health illustrates how private enforcement operates at the frontier of regulatory capacity. Congress has repeatedly attempted and failed to pass legislation governing platform design, algorithmic amplification, and the targeting of minors. The FTC’s authority is potentially applicable but has not been deployed at scale. The regulatory frameworks needed to establish clear standards remain, years into public awareness of the problem, largely unbuilt.


Into that gap have stepped coordinated proceedings in federal MDL and state courts, alleging that platform features were designed with internal knowledge of their addictive potential and their disproportionate effects on adolescent development. Whatever the ultimate resolution of those cases, the litigation has already begun forcing into the public record information about internal product decisions and user research that no regulatory proceeding has yet reached. In March 2026, a California jury found Meta and YouTube liable for negligent platform design, rejecting both Section 230 and First Amendment defenses—the first bellwether verdict to hold platforms accountable for design-based harms to adolescents. Private enforcement is not a substitute for thoughtful legislation. But it is filling the gap that legislation has not occupied.

 

The social media cases are, it should be noted, the most legally contested example in this series. Unlike pharmaceutical or chemical exposure litigation, platform liability claims must navigate Section 230’s broad immunity provisions and First Amendment questions that the opioid and PFAS cases did not present. The ultimate merits of these cases may differ from the prior examples. But even litigation that does not ultimately succeed forces into the public record information that regulatory silence cannot reach—and that distinction matters regardless of outcome.


The Practical Consequence of a Smaller Administrative Footprint


The structural argument for private enforcement as a complement to regulation is well-established. What fluctuations in agency capacity add is urgency.



Regulation and private litigation each supply what the other cannot. Regulation operates ex ante, setting prospective standards based on information available at approval. Litigation operates ex post, responding to harm that has materialized with discovery tools that can reach information never voluntarily shared. Regulation generalizes across industries; litigation develops facts specific to individual defendants and affected populations. Where these functions operate in tandem, the enforcement system is more complete. Where one contracts, the other must bear more weight.


When agency enforcement capacity declines—whether through budget reductions, staff attrition, or shifts in enforcement priorities—the civil justice system is not simply one option among several. For many categories of diffuse harm, it becomes the only remaining mechanism capable of generating accountability. Companies that externalize costs onto the public face reduced administrative scrutiny. The deterrence effect of potential enforcement weakens. The information that litigation forces into the public record, and that regulators themselves have often relied upon, is no longer generated.


One need not have a settled view on the optimal scope of the administrative state to recognize this dynamic. The practical question is not whether federal agencies should be larger or smaller. It is whether, given the enforcement landscape that actually exists, the civil justice system is equipped to do the work that system requires.


Conclusion


The debate over federal regulatory scope will continue, as it should. Reasonable people hold genuine disagreements about the appropriate role of administrative agencies, and those disagreements deserve serious engagement.


But the institutions available to enforce safety norms and produce corporate accountability do not wait for that debate to resolve. When the administrative footprint contracts, courts and private litigation occupy the space. Mass tort aggregation, as this series has argued from the beginning, is not a procedural anomaly or an artifact of plaintiff-side opportunism. It is a structural feature of how diffuse harm gets addressed in a system where regulation has never been sufficient on its own. That function does not become less important when regulatory capacity declines. It becomes more so.

  

Oliver Wendell Holmes once observed that “[t]he life of the law has not been logic: it has been experience.” The Common Law 1 (1881). The experience of the opioid epidemic, the decades of PFAS contamination, and the accumulating evidence of adolescent harm from platform design all point to the same structural lesson: Regulation and private enforcement are not competitors in an institutional zero-sum game. They are partners in an enforcement system that neither can sustain alone. The debate about their proper balance will continue. But dismissing private enforcement as mere opportunism ignores what experience has consistently shown: When private enforcement is absent, no one else fills the gap.


Certum Group Can Help

Get in touch to start discussing options.

Recent Content

By Patrick Dempsey • September 15, 2026
This is the second post in Certum Group's seven-part series bringing our Trade Secret Litigation Playbook to the blog. It draws on Part II of the Playbook, Trade Secret Law in Plain English. Read or download the full Playbook here . Here is a statistic that surprises most executives: in federal trade secret cases that reach a verdict, plaintiffs win roughly 84% of the time. 1 That is dramatically better than the plaintiff win rate in commercial litigation generally. It does not mean every case is easy — the cases strong enough to reach a jury are a selected group — but it tells you something important about what happens when a well-built trade secret claim gets in front of a fact-finder: courts tend to enforce the rights the statute was designed to protect. So why do good claims still fail? Usually not at trial. They fail earlier, on assumptions the claim holder never stopped to test. In more than a decade of evaluating these matters, the same handful of misconceptions come up again and again. Here are six worth clearing up before they cost you a case. Myth 1: "It's only a trade secret if we stamped it CONFIDENTIAL." Marking helps, but it is not required. What matters is whether your overall secrecy program is reasonable under the circumstances — a holistic look at contractual, physical, and technical controls. A perfect stamp on an otherwise open system is worth less than a coherent program with a few gaps. Myth 2: "If part of it is public, none of it is protected." Courts routinely protect a combination of individually public facts when the particular combination delivers competitive advantage. The recipe can be assembled from ingredients anyone can buy. What you protect is the assembly. Myth 3: "Our employees signed NDAs, so we're covered." NDAs are a foundation, not a program. The full set of reasonable measures a serious claim holder is expected to have includes access controls, badging, egress monitoring, exit procedures, and technical segmentation. An NDA in the drawer and nothing behind it is exactly the gap a well-resourced defendant will press on first. Myth 4: "We didn't sue the last person who left, so it's too late now." Trade secret protection is evaluated case by case. Declining to act on one departure does not forfeit your rights as to the next one. Every matter stands on its own facts. Myth 5: "We're too small to enforce against a big company." This one gets the economics backwards. A well-funded claim against a large, solvent defendant is often easier to win — and easier to collect — than a disorganized claim against a small one. Resources can be added to a strong case; facts cannot be added to a weak one. The right capital partner exists precisely so that a smaller plaintiff can stand toe-to-toe with a much larger adversary and neutralize the outspend-them tactics that used to decide these fights. Myth 6: "It's just know-how — courts don't protect that." Courts protect integrated know-how constantly. The question is never whether know-how is capable of protection; it is whether you can identify it with enough particularity to describe what was taken. 2 That is the single most consequential early decision in the case, and it is the one most claim holders do not realize they are making when they plead "our proprietary software" instead of the specific, described combinations that actually give them an edge. The through-line Notice what these myths have in common: each one leads a claim holder to under-invest in a case that the numbers say is very winnable. The 84% figure is not a promise. It is an invitation to take the early work seriously — the secrecy program, the identification, the evidence — because that work is what turns a strong set of facts into a strong case. Get those right, and the law is on your side more often than in almost any other kind of commercial dispute. Go deeper with the Playbook. This post covers one piece of a much larger picture. For the full framework — what the law requires, what a strong pre-filing case looks like, how damages experts value these matters, how counsel fee structures change your economics, and how litigation finance fits in — read Certum Group's Trade Secret Litigation Playbook , our field guide for business owners and the counsel who advise them: certumgroup.com/the-trade-secret-playbook . And if you are evaluating a live dispute — or simply want to pressure-test what a matter is worth and how it might be funded — get in touch. A confidential conversation with Certum is free and carries no obligation, whether or not you ultimately seek funding. Reach us at certumgroup.com/contact-us . Sources 1. Stout, Trends in Trade Secret Litigation (2024), reporting an approximately 84% plaintiff-favorable outcome rate across 271 federal trade secret cases reaching a verdict since 2017. 2. Both the federal Defend Trade Secrets Act (18 U.S.C. Section 1836) and the state Uniform Trade Secrets Act define a trade secret as information that derives independent economic value from not being generally known or readily ascertainable, and that is the subject of reasonable measures to keep it secret.
By Kevin Skrzysowski • September 10, 2026
For most companies, the legal department is viewed purely as a cost center—a line item to be managed and minimized. But many organizations are sitting on significant, unrealized value in the form of affirmative claims: lawsuits they could bring against suppliers, vendors, or competitors who have breached a contract, stolen trade secrets, infringed intellectual property, or otherwise caused recoverable damages. All too often these valuable claims go unpursued because litigation is expensive, unpredictable, and competes with the business for budget and headcount. Certum Group, in conjunction with the Corporate Counsel Business Journal, created this one-hour webinar to show in-house counsel how litigation finance changes that calculus— allowing companies to pursue meritorious claims with little or no out-of-pocket cost and on a non-recourse basis, so the downside risk shifts to the funder while the company retains the upside. Our panel brought together leaders in commercial litigation, intellectual property litigation, and legal academia and demystified how litigation finance works and walked through practical, real-world uses for the corporate legal team. We also took a close look at claim monetization: the ability to receive cash today against the value of a pending or contemplated claim, rather than waiting years for a judgment or settlement. Monetization can take the form of an upfront advance secured by the expected recovery, or an outright sale of the claim to a specialized organization that then prosecutes the case and collects the judgment. Attendees left with an understanding of when litigation finance and monetization make sense, how to evaluate and pitch a case, what to expect from the process, and how these tools can transform the legal department from a cost center into a genuine contributor to the bottom line. Watch the full webinar replay HERE . Supporting Materials: Litigation Finance Guide In-House Survey Research Brief Trade Secrets Playbook
By Patrick Dempsey • September 1, 2026
This is the first post in Certum Group's seven-part series bringing our Trade Secret Litigation Playbook to the blog. It draws on Part I of the Playbook, Why Trade Secret Claims Matter Now. Read or download the full Playbook here . In 2025, federal trade secret filings reached an all-time high — roughly 1,551 new cases in U.S. district courts, up from 1,203 just two years earlier. 1 That is not a blip, and it is not a quirk of the docket. It is the visible edge of a structural shift in how companies create value and how easily that value now walks out the door. Trade secrets used to be the quiet cousin of the intellectual property family — patents got the valuation multiples, trademarks got the brand meetings. That era is over. For a lot of growth-stage companies, the trade secret portfolio can be worth more than the patents, copyrights, and trademarks combined. It rarely shows up on the balance sheet, and it is almost never insured against the risk it actually faces — which is not that someone will design around it, but that someone will take it. So it is worth understanding why the numbers are climbing, because each driver points to a specific exposure that a business owner can do something about. Employees move more, and faster The single largest source of trade secret disputes is not corporate espionage. It is ordinary talent mobility. Roughly 60% of misappropriation cases involve a departing employee, typically heading to a direct competitor. Tenure has shortened, remote work has normalized discreet cross-company job searches, and the volume of departures that touch sensitive information has grown accordingly. The prototypical case a decade ago was a sales rep leaving with a customer list. Today it is a design lead, a data scientist, or a process engineer carrying the company's hardest-won know-how — sometimes in a file, more often in their head. The cost of taking information has collapsed A USB drive, a personal cloud folder, an auto-forwarded email rule, a screenshot script — what once required filing cabinets and a truck now takes a few minutes. The technical friction that used to deter casual misappropriation is largely gone. That has two consequences. It makes the taking easier, and it makes the forensic trail richer: badge records, git commit histories, egress logs, and download timestamps now tell a story that is often more persuasive to a judge than any witness. The evidence exists. The question is whether the claim holder preserves it before it rolls off a ninety-day retention setting. AI has raised the stakes Machine-learning models are trained on data, code, and process knowledge that is frequently proprietary. Competitors racing to ship an equivalent product have a powerful incentive to shortcut the long, expensive path of independent development — and in software, life sciences, financial services, and advanced manufacturing, a six-to-twelve-month head start can be worth hundreds of millions of dollars. When the crown jewels are unpatented know-how, misappropriation is not a nuisance. It is an existential competitive event. Apple's 2026 trade secret suit against OpenAI — built around aggressive hiring from Apple's hardware teams — is only the most visible example of a pattern now playing out across the economy. A single, credible venue Finally, the law itself has changed the calculus. Since 2016, the federal Defend Trade Secrets Act has given claim holders a nationwide cause of action, federal discovery tools, and remedies strong enough to matter — including an extraordinary ex parte seizure procedure. 2 Enforcement is more predictable than it was under a patchwork of state statutes, and predictability attracts plaintiffs. It also attracts capital, which is where a firm like ours enters the picture. What it means for you From the underwriter's chair, the trend line is unambiguous: more valuable secrets, more mobile employees, cheaper theft, and a legal framework that rewards claim holders who move deliberately. The companies that fare worst are the ones that treated their secrecy program as a compliance checkbox and discover, only in a complaint, that it was the strategy all along. The companies that fare best have thought about identification, preservation, and enforcement economics before they ever need them. If your business runs on information other people would love to have, the record filing numbers are not abstract. They are a forecast. Go deeper with the Playbook. This post covers one piece of a much larger picture. For the full framework — what the law requires, what a strong pre-filing case looks like, how damages experts value these matters, how counsel fee structures change your economics, and how litigation finance fits in — read Certum Group's Trade Secret Litigation Playbook , our field guide for business owners and the counsel who advise them: certumgroup.com/the-trade-secret-playbook . And if you are evaluating a live dispute — or simply want to pressure-test what a matter is worth and how it might be funded — get in touch. A confidential conversation with Certum is free and carries no obligation, whether or not you ultimately seek funding. Reach us at certumgroup.com/contact-us . Sources 1. Lex Machina, Trade Secret Litigation Report (2026), reporting an all-time high in federal trade secret case filings in 2025; see also Lex Machina, Trade Secret Litigation Report (2024) (1,203 federal filings in 2023). 2. Defend Trade Secrets Act of 2016, Pub. L. No. 114-153, 18 U.S.C. Section 1836 et seq.