The recent Altria class action settlement over Juul products highlights a growing concern in mass litigation: the exponential increase in fraudulent claims facilitated by generative artificial intelligence (AI). In consideration of this phenomenon, an analysis of this trending use of new technology’s impact on the Altria case provides an intriguing primer suggestive of smart strategies for law firms and businesses to mitigate associated costs and delays.
AI and the Surge in Fraudulent Claims
The Altria case serves as a stark example of how fraudsters are leveraging AI to overwhelm class action settlements with bogus claims. Initially expecting a manageable number of submissions, the settlement administrators were inundated with a staggering 14.4 million claims—nearly five times the anticipated volume. Lawyers attributed this surge to AI-powered programs, designed to automatically generate and submit fraudulent claims.
