Litigation Finance (16)

Written by Matthew Oxman, LexShares VP of Business Development | Jul 19, 2017 8:27:58 AM | 0 Comments

Litigation Finance: The Advantages of a Well-Capitalized Plaintiff

By Matthew Oxman, LexShares VP of Business Developement. Matthew can be reached at [email protected]

In recent years, litigation costs have been spiraling upward at a blistering rate.  Since the 2008 financial crisis, billing rates at top law firms have increased 3-4% per year, greatly outpacing the rate of inflation in the broader U.S. economy.  In 2015, law firm revenue increased 4%, despite a demand increase of just 0.5%.  The average rate for top partners now sits at $875/hr, over 25% higher than it was just 5 years ago.[1]

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

Written by LexShares Team | May 22, 2017 9:54:39 AM | 0 Comments

Eyeing the Beholder: Accounting for the Pivotal Role Judges Play in a Lawsuit

If the courtroom drama of a lawsuit could be reduced to the ever-shifting balance between Lady Justice's scales, the judge would be the fulcrum.  A judge maintains order over the proceeding and ensures that parties, witnesses, and counsel alike all follow proper procedures, safeguarding every party’s right to a fair trial.   At every trial, the judge decides each issue of law that arises.  Each time an attorney objects to a question, testimony, or piece of evidence, that attorney is asking the judge to determine, as a matter of law, whether the subject of the objection oversteps the bounds of admissibility under courtroom procedure and the rules of evidence.  In non-jury trials, a judge also serves as fact finder, determining whether the evidence presented suffices to establish the events and actions a party seeks to prove.  In trials where jurors decide the facts of the case, a judge instructs the jury on the laws that will guide its deliberations, and refines the scope of the facts under the jurors’ consideration.  In this way, just as a fulcrum keeps the scales aligned and supports equally the weight on each side, a judge personifies the level foundation upon which our legal system rests.

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Topics: Litigation Finance, Legal System

Written by LexShares Team | Apr 4, 2017 11:48:53 AM | 0 Comments

Making the Rain Fall (and Keeping It): Using Litigation Finance to Bring Your Cases With You to Solo Practice

It's a classic axiom applicable to nature and the traditional law firm structure alike: you eat what you kill.  While this adage, in its legal context, usually alludes to the heavily results-based reward structure of mainstay law firms, it also serves as a reminder to high-achieving attorneys at firms whose institutional costs or inefficiencies serve to dilute the actual volume of "rain" that finds its way into a rainmaker's pocket.  If an attorney—or the revenue from an attorney’s own clients—pull more than a fair share of weight on a firm's ledger, an attorney and his or her clients alike might be better served by cutting unneeded overhead and going [at] it alone. 

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Topics: Financing Lawsuits, Litigation Funding, Litigation Finance

Written by LexShares Team | Feb 28, 2017 10:22:05 AM | 0 Comments

How to Fund a Business Tort Lawsuit

As many daily headlines in the business sections of newspapers across the country will attest, business is not for the faint of heart.  Meticulously planned deals can fall through at the eleventh hour; partners may prioritize their own short-term gains over the long-term well being of the company; competitors could engage in smear campaigns meant to expand their base at any cost, even at the expense of good will others took decades to build.  When your business suffers unfairly from the misdeeds of third parties, sometimes the only recourse is to resolve the dispute in court. 

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Topics: Financing Lawsuits, Litigation Funding, Litigation Finance, business tort

Written by LexShares Team | Jan 30, 2017 4:40:35 PM | 0 Comments

4 Things Every Plaintiff Should Know About LexShares Litigation Finance

1.   Litigation finance from LexShares can help with your business or living expenses as well as cover out-of-pocket costs of litigation.

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Topics: Litigation Funding, Litigation Finance

Written by LexShares Team | Oct 4, 2016 10:51:50 AM | 5 Comments

Evolving Opportunities for Litigation Finance in Germany, Singapore, and Hong Kong

Mounting acceptance, availability, and reliance on litigation finance has made it progressively easier for claimants across the globe to obtain the funding they need to pursue their claims to just and equitable conclusions. While antiquated common law prohibitions like champerty and maintenance continue to render third-party funding unavailable in some venues, the tide appears to be shifting in favor of resource-strapped claimants. As evidenced by recent developments in jurisdictions like Germany, Singapore, and Hong Kong, many venues stand on the brink of opening themselves to litigation funding or witnessing rapid expansions in its availability due in large part to the market forces that have facilitated litigation finance’s widespread and fast-growing popularity on the global scale.

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Topics: Litigation Finance, International Opportunities

Written by LexShares Team | Sep 7, 2016 4:55:03 PM | 0 Comments

The Benefits of International Arbitration – and How Litigation Finance Can Help

Although used as a method of dispute resolution as far back as Plato's time, arbitration has grown into a 21st-century institution. Especially on the international scene, where claimants range from individuals to nation states to global commercial entities, arbitration offers a flexible, expedient, and cost-effective alternative to formal courtroom litigation. This is reflected in several of the largest arbitration institutes reporting their highest-ever numbers of cases filed in 2015, averaging between 10 to 22 percent increases over 2014 case numbers. 

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Topics: Litigation Finance, Arbitration

Written by LexShares Team | Aug 12, 2016 1:57:37 PM | 0 Comments

How Does Sharing Information with Litigation Funders Affect the Attorney-Client Privilege and Attorney Work Product Protection?

First explicitly recognized by the Supreme Court over 130 years ago in Hunt v. Blackburn1 and reaffirmed nearly a century later in Upjohn Co. V. United States2, the safeguards against discovery provided by the attorney-client privilege and attorney work-product protection have long been cornerstones of modern legal practice in the United States.3  While, as a general rule, attorney-related protections against disclosure are waived whenever protected information is disclosed by a client to a third party, a growing body of case law has developed to preserve those protections in situations where information or work product is shared with litigation funders. 

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Topics: Attorney-Client Privilege, Litigation Finance

Written by LexShares Team | Jun 9, 2016 4:13:40 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 | Jun 1, 2016 4:24:06 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