Claim Monetization

Facilitating Affirmative Litigation Asset Recovery

 

Home | Solutions | Claim Monetization

Risk Settlements’ claim monetization solution provides companies with opportunities to identify and monetize their affirmative legal claims. Risk Settlements will assess litigation assets and provide a strategy for monetization. Some opportunities include: (1) individual litigation against a vendor, contractor, or competitor; (2) participating in a consortium with other companies seeking redress from the same wrongdoer; or (3) “opting out” of pending class action litigation to pursue an individual direct claim, which is often more lucrative than the class recovery.

For those concerned about the inherent uncertainty, timing, or amount of any recovery, for qualifying cases, Risk Settlements may monetize part of the claim up front, thereby providing much needed revenue, irrespective of the actual outcome of the litigation. By pulling forward potential recoveries, companies can obtain immediate revenue without the uncertainty of the actual outcome. Cash resources that might have been used to cover legal costs can be redeployed into the company’s core operations. While contingent legal assets generally have no ascribed value on a company’s balance sheet, upfront claim monetization can generate cash to help improve the company’s bottom line. Simply put, non-recourse, claim monetization reduces the financial and outcome risk of pending or future litigation and provides upside opportunity to monetize litigation assets.

Stage of Litigation

Our affirmative claim monetization solution can be utilized both before and during litigation. Pre-litigation, it can be used to identify, evaluate, and value potential claims a company might possess against a third-party. During litigation, it can be used to monetize the pending claim thereby generating immediate revenue for the company and eliminating the uncertainty of the financial and outcome risks.

How It Works

As litigation and risk specialists, we can help a company identify potential claims that could be monetized. As part of our process, we design monetization solutions for companies by:

  • Identifying potential claims that could be monetized;
  • Analyzing current litigation to determine if there are efficiencies using litigation funding to carry the costs of litigation;
  • Creating consortiums of similarly situated companies using economies of scale and critical mass to maximize recoveries; and/or
  • Offering immediate monetization of all or a portion of the claims, thereby generating revenue for the company without the time, expense, and uncertainty of ongoing litigation.

Key Benefits

Utilizing Risk Settlements’ affirmative claim monetization solution, a company’s legal department can become a corporate profit center instead of solely an expense.

 

Next Steps

To arrange a confidential consultation, discuss your specific needs, or learn more about how we can meet your financial and business objectives, please email us, call us at (214) 570-3661 or click the Contact Us button on this page. We look forward to helping you solve any financial and legal uncertainty arising from existing or threatened litigation.

Massage Envy: Are All Vouchers Now Coupons Under CAFA?

The Ninth Circuit’s October 2021 McKinney-Drobnis v. Massage Envy Franchising decision might signal the death knell for voucher-based class action settlements that are not considered “coupon” settlements under CAFA. If this settlement cannot survive, it’s not clear...

Briseño v. Henderson: Can the Parties Salvage the Settlement?

The Ninth Circuit’s June 2021 decision in Briseño v. Henderson, which reversed and remanded a claims-made settlement involving the ConAgra-owned Wesson Oil’s use of a “100% natural” label, attracted attention for its colorful language, including pop culture references...

Litigation Buyout Insurance: How Does It Work?

In July 2021, Risk Settlements co-presented a PLI webinar on how litigation buyout insurance (LBO insurance) can help keep companies “deal ready.” Following up on that presentation, we thought a brief article detailing the nuts and bolts of litigation buyout insurance...

NAD Dispute Resolution Process: Secret Until It’s Not

by Ross Weiner I wrote a June 2021 article in Law360 describing how competitor advertising disputes brought to the National Adverting Division (NAD) are often a precursor to civil litigation.  But a recent decision out of the Northern District of California...

The 11th Circuit Tells Plaintiffs They Can’t ShoeHorn Insurance Coverage for a TCPA Claim

On June 1, 2021, the 11th Circuit stymied a certified class’s effort to force an insurance company to cover its insured’s TCPA settlement.  Horn v. Liberty Ins. Underwriters, Inc., 998 F.3d 1289 (11th Cir. 2021).  The court agreed with the district court’s...

TransUnion’s Unintended Consequence: More State Court Class Actions

It has been well documented that the Supreme Court’s June 25, 2021, opinion in TransUnion LLC v. Ramirez further limits the ability of plaintiffs to bring lawsuits in federal court based on technical statutory violations.  Indeed, to establish federal court...

Risk Settlements Can Help

Get in touch to get started discussing options.