Litigation Funding: A Strategic Tool for Valuing Legal Claims as Assets
As the specter of inflation and a possible recession looms large, executives and boards may consider avoiding the high costs and risks of pursuing litigation. However, this can lead to missed opportunities for legal settlements and awards, as well as failure to protect important assets like IP rights. Thankfully, litigation funding provides a solution.
Corporate lawyers and CFOs can use litigation funding to value their legal claims as assets, lower litigation risks, and safeguard upcoming settlements and awards. Law firms can also benefit from litigation funding as a way to protect profits.
Litigation funding is becoming an increasingly popular option for companies and law firms, allowing them to pursue high-value litigation against defendants with deep pockets. By pairing a contingency fee arrangement with funding from a third party, businesses can shift litigation costs “off-balance” and reduce the impact of litigation costs on their financial statements.
Using litigation funding as a finance tool reduces the costs and risks of litigation while maintaining the potential upside of successful outcomes. It is a popular risk-reduction tool for law firms as it transfers much of the risk to the funder. In 2021, U.S. litigation funding companies committed $2.8 billion toward new deals, an 11% increase from the prior year, according to Westfleet Advisors’ 2021 Litigation Finance Market Report.
Law firms can use litigation funding to pursue multiple lawsuits through “portfolio” funding and fund current and future cases, making it a strategic growth tool. This allows lawyers to take on more cases and more complex lawsuits, retain preferred experts, depose more witnesses, and pursue other legal objectives that help increase the odds of a successful outcome.
Companies and law firms can channel any capital they would’ve spent on litigation into growing their business. There are many ways to structure and benefit from litigation funding agreements. Contact Amicus Capital at 877-926-4287 to learn more now!
How We Can Help
Amicus Capital Group is a provider of litigation finance. We offer funding for both pending and future litigation, as well as risk management services. By funding the costs of litigation upfront, we can help you avoid the need to pay these costs out of your own pockets if you lose the case.
In addition to providing financial support, we also offer a number of other benefits, including:
Risk management: We can help you manage the risks associated with litigation, including the risk of losing the case and having to pay the other side’s legal fees.
Expertise: We have a team of experienced professionals who can help you navigate the litigation process.