1. Litigation finance from LexShares can help with your business or living expenses as well as cover out-of-pocket costs of litigation.Even the strongest case may not succeed if you or your business cannot afford to wait for a verdict or fair settlement, or if potential litigation costs exceed your financial resources. LexShares’ capital gives plaintiffs the support they need to endure the often arduous and time-consuming lawsuit process and receive the just compensation they deserve.
2. If you do not prevail in your case, you will not owe LexShares anything.
At LexShares, funding is provided in exchange for the right to a portion of a lawsuit’s proceeds on a non-recourse basis. As a result, you only pay if you prevail via adjudication or settlement of your case. Repayment, if successful, then comes directly from your case’s proceeds. If your lawsuit fails or yields no proceeds, you will owe nothing.
3. LexShares helps even the playing field and mitigates many unfair advantages enjoyed by well capitalized defendants.
While justice should be equally accessible to all, the realities of the legal system often allow larger, better capitalized defendants distinct advantages over those plaintiffs with limited financial resources. Capital provided by LexShares, we believe, not only strengthens your ability to continue to pay business expenses or personal expenses but also minimizes the advantages traditionally enjoyed by the wealthiest litigants by providing you access to the highest tier of legal representation, expert witnesses, and research.
4. LexShares does not interfere with your litigation strategy or settlement negotiations.
LexShares is strictly a financing partner. We do not take any control over your case. Per our litigation funding agreement your litigation strategy and settlement negotiations remain fully between you and your counsel. You retain full decision-making authority throughout the lifecycle of your case.
More About Litigation Finance and LexShares
Litigation finance, also known as litigation funding or lawsuit funding, is a powerful and distinctive form of investment that allows third-party investors to provide the funds necessary for breach of contract claimants to fully litigate their lawsuits. In return, those plaintiffs agree to give the investors a portion of future proceeds, but only when their claims result in a sufficient and realized settlement. Because an investor's return depends on the success of the plaintiff's case, traditionally only legally sophisticated investors capable of accurately assessing the merits of a case themselves could expect to participate in and benefit from litigation finance investments. In addition, the high cost of litigation often meant that only institutional investors had access to the amounts of capital necessary to invest in a lawsuit single-handedly.
LexShares, an online platform specifically designed to connect investors with meritorious plaintiffs, can streamline the process for breach of contract litigation funding for the plaintiffs and investors involved. Plaintiffs in need of capital to help pay for litigation costs or keep their businesses running simply apply for funding. Submitted plaintiff cases are reviewed by a team of legal professionals with experience in managing investments in legal claims. Those which are found to have strong merits are posted as investment opportunities with specific funding goals. Accredited investors can review case details and decide whether and how much to invest—starting with as little as $5,000.
LexShares’ innovative online model allows a wide range of accredited investors to evaluate case details and track the progress of litigation throughout the lifecycle of the case. In addition, investors need not fund a entire case themselves. Multiple investors can contribute their desired funding amount until plaintiffs reach their funding goals. However, if a case is not funded within a 30 day window, the offering could end. Once the funding goal is reached, the plaintiff receives the funds needed for litigation expenses and working capital. The case is continually monitored as litigation progresses, and if the plaintiff settles or obtains a judgment, investors collect a portion of the recovery, when paid. A plaintiff who does not prevail owes LexShares investors nothing.
LexShares combines litigation finance expertise with an online venue that easily connects plaintiffs and their cases with accredited investors. To create a seamless experience, LexShares creates a special purpose vehicle that investors fund that then provides funding to the plaintiff. By offering a wider spectrum of investors access to a new asset class—investments in legal claims—LexShares helps undercapitalized plaintiffs more easily finance their legal expenses, enables capital injections to ongoing cases which encounter what might otherwise be crippling funding constraints, and increases plaintiffs’ access to premier legal talent. Those attorneys and law firms can then take on cases from plaintiffs who might otherwise be unable to afford their fees, as well as offer them more flexible payment arrangements. In all of these ways, by making litigation finance as a whole more accessible to all, LexShares makes fairer and fuller recoveries more accessible and achievable for everyone involved.