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Consumer Products Case Study

Risk Settlements > Case Studies  > Consumer Products Case Study

Consumer Products Case Study

Plagued by significant exposure, illiquidity and substantial leverage, the company was unable to structure a settlement which met its liability and financial constraints. Using Class Action Settlement Insurance (CASI), the settlement was finally achievable in a way that provided the company answers to their concerns.

Here’s how we did it.

Business Challenge

In consumer products class action cases, settlement can leave companies uncertain to actual costs and in limbo on future business operations.

Solution

Risk Settlements has developed a proprietary approach using the most comprehensive historical database and quantitative and qualitative risk assessment predictive system for class action litigation. For each client, we analyze the financial risks associated with the lawsuit and then individually design a fully-insured settlement structure that reduces risk and provides cost certainties.

Results

Plagued by significant exposure, illiquidity and substantial leverage, the company was unable to structure a settlement which met its liability and financial constraints. Using Class Action Settlement Insurance (CASI), the settlement was finally achievable in a way that provided the company answers to their concerns.

Benefits

When Risk Settlements was approached, the company was exploring all options in response to the financial risk of a class action settlement, including bankruptcy. Risk Settlements structured the settlement in a way that preserved much-needed capital and provided risk transfer that prevented the company from defaulting on its debts.

Risk Settlements, the industry leader in structuring class action settlements, evaluates litigation options and designs the optimal settlement structure that will reduce risk and translates into cost certainties for the business.

In this case, the company was highly-leveraged, had a substantial class action liability and could not accept the financial volatility and uncertainty of the claims process. Using CASI, Risk Settlements was able to accomplish what five prior failed mediations could not do: settle the class action litigation by providing the company what it needed most–cost certainties to stay in business.

As in this case, Risk Settlements can often help companies design settlements with cost certainties that are considerably more efficient than a similarly-sized traditional common fund settlement. Our expertise in developing efficient settlements and our ability to absorb the risk of any one settlement into a diverse pool of settlements involving various types of defendants, classes, claims and jurisdictions provides companies with the certainty they need to get back to business.

In addition to consumer product settlements, Risk Settlements can assist most any company–regardless of industry, size or type of class litigation–resolve class action litigation quickly and efficiently while backed by full risk transfer to an insurer.

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