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Marketing and Labeling Case Study

Risk Settlements > Case Studies  > Marketing and Labeling Case Study

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.

Business Challenge

Marketing and labeling class action cases can leave companies uncertain and facing financial risks that could have a negative impact on business operations, such as M&A transactions, financial reporting and debt acceleration.

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

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.”

Benefits

When Risk Settlements was approached, the company was exploring resolution for just one product line. We structured the settlement to capture all products and SKUs, thereby achieving peace on approximately $1.3 billion in liability and backstopping the settlement with insurance to cap the risk.

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.

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