Investing in Lawsuits
photo credit: ttarasiuk
Now this is an interesting idea. Juridica Capital Management invests in lawsuits.
The investing companies say that because they do not take control of the lawsuit from the company and lawyers waging it, their most important task is identifying cases likely to produce a substantial return. That means, for example, rejecting claims that raise novel legal questions or that will probably end up before a jury, Mr. Fields said.
“Juries are a coin toss,” and that is too much uncertainty, he said. The company also avoids cases where the outcomes are difficult to predict because they could draw political attention or could be reversed on appeal, and cases in which the other side lacks deep pockets.
When considering a case, the investors talk to the company and its lawyers about the facts and about their legal strategy. They also seek analysis from outside specialists, usually experienced lawyers.
Just shows that there’s a way to make money from everything.
Emanuel McCray on June 7th, 2009 5:00 pm
Investing in lawsuits. This business model needs to be seriously developed and pursued. The Civil Rules of Procedure favors the Plaintiff. Reinforced by sanctions, a Plaintiff could efficiently pursue a matter under the mandate to reduce litigation. Qualcom v. Broadcom (San Diego) is one lawsuit that resulted in sanctions against Qualcom for numerous violations of the rules of procedure. Let’s level the playing filed by giving all plaintiffs a fighting chance. I am aware of at least five lawsuits valued at over $300million each. Contact me if you are a serious investor. Google: “emanuel mccray” for my email and website emccray.com.
RedHotFranchises on June 7th, 2009 6:16 pm
Indeed, there’s a way to make money from everything. It is regarded as a slightly shady business in the legal community. Moreover, there are post-trial motions, appeals, lack of money to pay-out.
There is a ton of money to be made in this business because often the plaintiffs will “take what they can get” from these funding companies because a.) they want their money now and b.) they are often unsure if they’ll ever get anything.
That said, legality and the complexity of the business make it a difficult proposition and a risky investment. If legality could be clear cut, this investment would come down to management team. The right managers could do well in this business
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