LexShares Blog

LexShares Team

LexShares Team

Written by LexShares Team | July 13, 2016 at 11:50 AM | 0 Comments

Diversification, Uncorrelated Assets, and Litigation Funding

Financial advisors have always stressed the importance of mitigating risk by diversifying portfolios through investment in a wide range of uncorrelated assets. Nowhere is this point illustrated more saliently than in times of great market volatility, such as the 2007-2008 financial market crisis and the recent short-term volatility following the United Kingdom’s Brexit vote, where value slowly accumulated over the course of many years can evaporate in a span of minutes. Such instability heralds a heightened opportunity for both risk and reward; whether the latter is worth the former, however, largely depends on an investor's temperament and financial goals.  Those who can ill afford a rapid depreciation in the value of their portfolios may be wise to heed the call for diversification.

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Topics: Litigation Funding, Investing, Diversification

Written by LexShares Team | June 29, 2016 at 5:00 PM | 0 Comments

Resources Matter When Bringing Investment Fraud Lawsuits

By far, the most valuable commodity in an investor’s portfolio is trust.  All successful investors trade in it.  Trust in company financial reporting, executive statements, brokerage advice, and other public sources of information underlies every purchase, sale, and exchange.  Any party with first-hand, confidential knowledge of a company’s workings is barred from trading in its stock or securities due to the unfair competitive advantage such insider knowledge provides; instead, they, like all investors, must rely on the even playing field of public information provided by others.  As a result, executives and those in positions of authority can do a great deal of damage when they breach that trust by engaging in unscrupulous practices such as giving investors misleading or outright false information, exploiting inside trading, or even embezzling funds.

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Topics: Financing Lawsuits, Litigation Funding, Investment Fraud

Written by LexShares Team | June 9, 2016 at 4:13 PM | 4 Comments

How to Fund a Whistleblower or Qui Tam Lawsuit


No matter how civilized society may seem, the sad truth is that malfeasance happens every day.  Yet only a small proportion of wrongdoings ever see the light of day, much less the full and open scrutiny of the courtroom.   The federal government itself presents a large and potentially lucrative target for defrauders by virtue of its size and bureaucratic limitations.  Every taxpaying citizen ultimately pays for this exploitation, not only in dollars but in the hazards posed by deficient goods or services.   Where fraud against the government might otherwise fester unchecked, whistleblowers play a critical role in society by calling attention and deterring further abuse through qui tam or whistleblower actions, in which private parties—called relators—file a lawsuit on the government's behalf.   Relators who prevail in qui tam cases can receive between 15% and 30% of any award or settlement.

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Topics: Whistleblower Lawsuits, Litigation Finance

Written by LexShares Team | June 1, 2016 at 4:24 PM | 0 Comments

Financing Squeeze-Out or Freeze-Out Lawsuits Intelligently

Like any relationship, business partnerships will wax and wane.  Priorities and alliances can shift, and shareholders whose interests initially align with the majority could easily find themselves at odds with them.  In the long term, disagreements over a company’s direction and management decisions are nearly inevitable, but when majority shareholders use their collective voting power to divest other shareholders of control—or even ownership—of a business through unfair and potentially coercive means, they often violate the law in the process.

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Topics: Freeze Out, Litigation Finance, Squeeze Out

Written by LexShares Team | May 27, 2016 at 3:08 PM | 1 Comment

Litigation Finance -- Following the Smart Money

Sometimes it takes a high profile individual to bring an under-reported topic to the forefront.  When it was discovered that billionaire entrepreneur, venture capitalist, and hedge fund manager Peter Thiel has been investing in litigation, the national media erupted about this brand new field of litigation finance.

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Topics: Litigation Finance

Written by LexShares Team | April 11, 2016 at 9:30 AM | 0 Comments

How to Finance Breach of Contract Lawsuits: Litigation Finance Through LexShares

Contracts are usually struck with the greatest of intentions, but often reality gets in the way.  A data center vowing to safeguard its clients’ information may neglect to update its firewalls against an emergent Trojan horse virus.  A manufacturing plant may produce hundreds of thousands of fittings one-eighth of an inch too small for the purchaser’s intended purpose.  A lifestyle brand may arrange to sell its product lines in one retail chain despite having made an exclusive licensing agreement with another national retailer.  Across a wide range of circumstances, when a party fails to fully perform their part of an agreed-upon exchange, a breach of contract occurs. 

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Topics: Litigation Finance

Written by LexShares Team | March 28, 2016 at 10:30 AM | 0 Comments

What is Litigation Finance? An Attractive New Asset Class for Accredited Investors

Litigation finance for commercial lawsuits—also called lawsuit financing or litigation funding—is a powerful and distinctive form of investment that traditionally has been available only to law firms and institutions with considerable financial resources at their disposal.  But much as crowdfunding platforms have connected investors with products, ventures, and creators worthy of their support, a new service called LexShares has combined litigation finance expertise with an online venue that connects accredited investors to pre-vetted plaintiffs and cases, opening the door to a new asset class that taps into the undercapitalized $200 billion U.S. litigation market.

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Topics: Litigation Finance

Written by LexShares Team | July 22, 2015 at 10:30 AM | 0 Comments

LexShares Litigation Finance Market Overview

 

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Topics: Litigation Finance

Written by LexShares Team | February 26, 2015 at 10:00 AM | 0 Comments

A New Litigation Finance Model for Business Disputes

Business litigation is always a costly proposition. Although fraught with risk, it often represents a party’s only hope for redressing wrongs. The decision to bring suit is a momentous one, with the power to make or break entire companies. Yet those parties unable to bear the financial burdens of litigation themselves are precluded, making that important decision at all, regardless of how strong their underlying claim – their right to restitution – might be.

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Topics: Litigation Finance

Written by LexShares Team | December 2, 2014 at 9:15 AM | 0 Comments

Litigation Finance and the U.S. Legal Industry

The U.S. legal industry is vast. The combined value of all verdicts, settlements, attorneys’ fees, and billings for non-lawyer legal services would easily eclipse the GDP of Switzerland. Within its courtrooms each year are tens of millions of cases – a good proportion of the civil docket comprised of torts and commercial lawsuits – and hundreds of billions of dollars change hands. Attorneys occupy a dichotomized position within the sector, both celebrated and hated for their important role in the legal system. Arbitration, settlement, and other out-of-court forms of resolution represent a substantial proportion of tort and commercial claims – as much as 40 percent by some estimates – that are never formally initiated, and thus unfold in addition to courtroom statistics. A market of this staggering size and magnitude cannot help but offer a compelling investment proposition.

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Topics: Financing Lawsuits, Litigation Funding, Litigation Finance, Legal System

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