Industry News

PI Market Week: Rideshare Preemption, NEC Verdicts, and PE Consolidation

The BUILD America 250 Act's Fong amendment, cleared by the House T&I Committee on May 22, 2026, would preempt state rideshare vicarious-liability doctrines, threatening the theories behind the sector's largest verdicts. Orion Legal MSO closed its third plaintiff PI firm partnership in six months on June 16, 2026. Jury selection in Inman v. Mead Johnson, the first Daubert-surviving federal NEC bellwether across 798 active cases, opens July 6, 2026.

PI Market Week: Rideshare Preemption, NEC Verdicts, and PE Consolidation

PE Capital Accelerates Plaintiff-Firm Consolidation

Uplift Investors' Orion Legal MSO closed its third plaintiff PI partnership in six months on June 16, 2026, adding John Foy & Associates of Georgia to a roster that already included Dudley DeBosier Injury Lawyers (Louisiana, January 2026) and Hughes & Coleman Injury Lawyers (Kentucky and Tennessee, May 21, 2026). Holland & Knight served as MSO counsel on both the Hughes & Coleman and John Foy transactions; Law Firm GC represented the Georgia firm. John Foy joins Orion's National Advisory Board alongside Hughes & Coleman's Lee Coleman, who serves as Chair.

The model is precise in its structure: Uplift's Darien, Connecticut-based platform delivers marketing, finance, technology, talent, and administrative infrastructure, while attorney ownership of each partner firm stays at 100 percent. Bloomberg Law has reported that at least one PE-backed PI platform expects a dozen transactions by year-end, suggesting the pace Orion has set in 2026 is not an outlier.

For medical providers evaluating the LawyersTrend lien directory, the consolidation matters operationally. Firms inside managed-services organizations tend to standardize vendor relationships across the portfolio, which can mean a single billing relationship reaches multiple regional practices. Providers who have established workflows with one Orion partner should anticipate that intake protocols, lien-negotiation timelines, and payment systems may align across the platform over time.

Takeaway: The Orion Legal MSO build-out gives counsel at large-volume shops a benchmark for what non-attorney capital looks like in practice, and gives medical providers a reason to track which firms are joining consolidated platforms before renegotiating billing arrangements.

Federal Rideshare Preemption Bill Moves Toward a House Floor Vote

The BUILD America 250 Act (H.R. 8870, 119th Congress) cleared the House Transportation and Infrastructure Committee on May 22, 2026, carrying a Fong (R-CA) amendment that would preempt state vicarious-liability, non-delegable-duty, and common-carrier doctrines for app-based rideshare and delivery companies. Under the amendment, a company is shielded from liability unless the plaintiff proves gross negligence or criminal wrongdoing at the corporate level, a threshold that eliminates the respondeat superior and agency theories on which most high-value rideshare verdicts have rested.

The timing is not incidental. The amendment was introduced shortly after a second federal jury returned a verdict finding Uber liable for a driver's sexual assault, and it moved through committee as state legislatures have been expanding, not contracting, carrier duties. Opposition from more than 275 state legislators formalized in a June 10, 2026 letter to Speaker Johnson, but as of July 3, 2026, the bill still requires a House floor vote and Senate passage.

For California auto PI practices, the federal threat compounds a state-level change already in effect. SB 371, signed by Governor Newsom on October 3, 2025 and effective January 1, 2026, cut UM/UIM per-person coverage for rideshare passengers during on-trip periods from $1 million to $60,000, a 94 percent reduction. The third-party liability floor remains $1 million per accident when the rideshare driver is at fault, but the UM/UIM reduction closes a recovery path plaintiff counsel had used when at-fault drivers were underinsured.

Takeaway: If H.R. 8870 passes in its current form, counsel handling rideshare auto PI cases will lose the common-carrier and vicarious-liability theories that produced the sector's largest verdicts, making the bill's Senate trajectory the most consequential legislative variable for auto PI firms through the remainder of 2026.

NEC Formula Litigation Opens Its First Federal Bellwether Trial

MDL 3026 in the Southern District of Illinois reaches a structural turning point on July 6, 2026, when jury selection begins in Inman v. Mead Johnson, the first federal NEC infant-formula bellwether where plaintiff causation experts survived Daubert scrutiny. Judge Rebecca Pallmeyer denied Mead Johnson's motion to exclude epidemiologist Dr. Logan Spector, whose testimony will reach a federal jury for the first time in the MDL's history. Three prior federal bellwethers ended at summary judgment in 2025 via Daubert exclusions of plaintiff experts.

The federal trial opens against accelerating state-court pressure. The Missouri Court of Appeals affirmed the $495 million Gill v. Abbott verdict in May 2026, upholding $95 million in compensatory damages and $400 million in punitive damages, and rejecting Abbott's learned-intermediary defense on the ground that preterm cow-milk infant formula is food, not a prescription medical product. TorHoerman Law served as lead plaintiff counsel in Gill. In Illinois state court, an April 2026 Cook County jury awarded four NEC families a combined $70 million against Abbott, the first multi-family NEC trial in that jurisdiction. Cumulative state-court plaintiff verdicts in NEC cases now exceed $625 million across three cases.

MDL 3026 carries 798 active federal cases as of June 2026. With Dr. Spector's testimony cleared for trial and the Gill punitive award standing on appeal, settlement pressure on both Abbott and Mead Johnson is at its highest point since the MDL was consolidated. The learned-intermediary holding from Missouri is particularly significant for future state-court NEC cases: by classifying preterm formula as food, the appellate court foreclosed a defense that had allowed manufacturers to argue NICU physicians bore primary disclosure responsibility.

Takeaway: Mass-tort counsel tracking MDL 3026 should note that Inman's jury-selection date sets a new evidentiary floor for the federal litigation, and the combination of a surviving Daubert record and a $495 million appellate affirmance gives both defendants concrete reasons to reconsider global resolution before a federal verdict is returned.

California SB 487 Rewrites Net-Recovery Math for WC Lien Cases

California's SB 487 amended Labor Code section 3852 effective January 1, 2026, capping the workers' compensation carrier's subrogation lien recovery from a third-party PI settlement at one-third of gross recovery, exclusive of attorney fees and costs. Prior to SB 487, carriers could seek full reimbursement of paid benefits out of the client's net third-party recovery, frequently consuming a disproportionate share of smaller settlements and creating difficult conversations about distributable proceeds.

The practical rewrite touches every California PI firm handling concurrent WC and third-party cases. Lien-intake worksheets need to reflect the new ceiling when carriers assert subrogation claims. Net-recovery calculators should apply the one-third cap before projecting client distributions. Settlement communications need updating so that client expectations reflect SB 487 math, not pre-2026 carrier demands. Firms that have not already recalibrated these workflows are likely carrying projected distributions that overstate carrier exposure.

For medical providers in the LawyersTrend directory, the implications run in an instructive direction. When a WC carrier's recovery is capped, the net pool available for non-WC medical liens may shift depending on how a given firm structures its allocation waterfall. Providers with existing lien agreements on California third-party cases should confirm with treating counsel how SB 487 affects the net-recovery projection and whether any prior settlement estimates need revision.

Takeaway: California PI firms running high-volume WC lien dockets should audit pending third-party settlements opened before January 1, 2026 to confirm that carrier demand letters have been repriced against the new one-third ceiling, since carriers who issued pre-SB 487 lien demands are not automatically recalculating them.

The LawyersTrend Brief · Fridays

One weekly email. Every new article.

Friday mornings — every PI article we publish that week, plus rankings updates and key verdicts. Free. One-click unsubscribe.