Software company turns into personal injury company

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REUTERS/Toru Hanai (JAPAN)

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  • Mighty Law says it will cut costs for personal injury bar
  • The firm practices in Connecticut, Georgia and Texas

(Reuters) – A software company that serves personal injury practices is launching its own law firm, offering what it says is a better option to plaintiffs’ usual bar fee structure.

The company, Mighty Group Inc, which works with law firms, medical lien providers and personal injury clients to manage their cases, opens Mighty Law in Connecticut, Georgia and Texas.

Mighty’s attorneys must cover 10% of the client’s medical bills and filing fees, Mighty chief executive Josh Schwadron said. Additionally, Mighty attorneys cap their fees at 30% of clients’ pre-litigation gross settlement or 36% if their cases go to litigation, Schwadron said.

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Mighty Law also publishes its fee structure on its website, an unusual display of transparency for personal injury law firms, said Stanford Law School professor Nora Freeman Engstrom.

Mighty’s pricing strategies appear unique, said Tim McKey, owner of personal injury consultancy Vista Consulting Team, adding that most companies accept a 33.33% reduction in settlements.

The firm launched Friday with seven attorneys in the three states, with plans to expand. Mighty Law attorneys will work both from its offices in these states and remotely. Mighty, which has 60 employees, will continue to operate its software side as a business overseen by the law firm.

Schwadron, 40, an Emory University law graduate, started Mighty in 2015 as a platform for individuals to recruit lawsuit investors. It switched to software in 2018.

Since its inception, Mighty has raised $15 million, including backing from venture capital firms IA Ventures and Tribeca Venture Partners, according to Schwadron.

Schwadron said the personal injury bar is plagued by attorneys who have undisclosed relationships with medical providers and funders that allow them to increase the value of a case by increasing medical costs.

“Lawyers will tell you that their incentives are aligned with the client,” Schwadron said. “Nothing could be further from the truth.”

McKey said he’s seen situations where clients’ medical bills are inflated. And while he said the problem is not pervasive, he also said there is room for innovation in personal injury fees to better serve clients.

Still, Mighty will have to overcome name recognition among consumers from avocados featured on billboards and radio ads, McKey said.

“If they are happy with the reduced price, then Mighty will succeed.”

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