Marketing and Labeling Case Study
Using Class Action Settlement Insurance (CASI), Risk Settlements designed a settlement structure that rolled-up all legacy liability arising out of the marketing of an entire product line of “all natural products.”
Here’s how we did it.
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 facing what it thought was an intractable problem: the need to settle over $1.3 billion in sales liability from all natural labeling and marketing, versus providing a claims process placing millions of dollars at risk for the business without any effective way to eliminate waste, fraud and abuse. Simply put, the liability under any settlement was larger than the company’s risk appetite. Armed with proprietary data and deep expertise, we customized a settlement backed by full risk transfer which simultaneously met the company’s legal, business and financial objectives.
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 marketing and labeling 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.