Class Action Settlement Insurance (CASI) is the most efficient and cost-certain tool for settling class action litigation. For those cases where settlement is not an immediate option or time is of the essence for business reasons, the buyout of the litigation provides an additional solution.
The financial and time costs of litigation can be onerous and risky. Further, the uncertainty as to the process and total costs of defending the litigation and the ultimate judgment can be a deterrent to a company’s pending financing and M&A transactions. Through class action litigation buyout (LBO) insurance, a company can successfully ring fence the liability and transfer the financial risk to the insurance carrier.
In exchange for the insurance premium, the insurance carrier may:
Take over the defense of the litigation
Take financial responsibility for defense costs
Take financial responsibility for any settlement costs or final judgment
Key benefits of class action litigation buyout insurance include:
Converts a contingent liability into a certain cost
Caps the financial risk on final settlement or judgment costs
De-risks liability to facilitate M&A and financing transactions
Avoids unnecessary distraction in defending the litigation
Provides peace of mind so companies can get back to business
Each policy is customized to meet the company’s specific business, financial and legal objectives. Contact us to learn more about the LBO process and how we can create a quick and effective solution for you.