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.