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TCPA Case Study

Risk Settlements > Case Studies  > TCPA Case Study

TCPA Case Study

Risk Settlements saved the company $7.5M and provided a fixed cost solution which removed all of the risk.

Here’s how we did it.

Business Challenge

In Telephone Consumer Protection Act (TCPA) class action cases, settlement can end up being just another step down the road of uncertainty, leaving companies to speculate as to how much resolution will actually cost and whether they have the resources to pay all of the claims.

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

When Risk Settlements was approached, the company was considering a $15 million common fund. Risk Settlements’ team of experts restructured the settlement, providing the company with $7.5 million in cost efficiencies while transferring 100 percent of the settlement risk to an insurer with A++ and AA+ ratings.

Benefits

By restructuring the settlement, Risk Settlements removed the claims volatility, risk and uncertainty, freeing up the company’s balance sheet. The company resolved the case, capped the risk and was able to effectuate its M&A transaction as the settlement uncertainty had been removed.

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, Risk Settlements was able to facilitate resolution to the litigation in a cost effective manner and provided a fixed-cost solution which removed all of the risk via CASI. In short, the premium was priced at an “average” payout under the settlement. For this company, this was a compelling solution with the following benefits: the settlement costs were now fixed; the claims volatility, risk and uncertainty were removed; and the company’s balance sheet was clean, allowing the business to expense the premium in one quarter rather than carrying a huge liquidated loss for several quarters or years. 

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 TCPA 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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