How does the Risk Settlements platform work? What are the advantages for legal teams when using Risk Settlements?
Risk Settlements is not a traditional litigation funder. At its simplest, we provide risk transfer solutions for parties, as well as their funders, facing the uncertainty of litigation by transferring the outcome risk. We think of our company as providing certainty in the uncertain world of litigation.
In addition traditional litigation funding, we are a leader in providing comprehensive alternative litigation strategies, including monetization of commercial claims and judgments and insurance for litigation buyouts, judgment preservation, class action settlements, and adverse judgments.
Our risk transfer solutions include, among others:
- Claim monetization – converts an illiquid litigation claim into non-recourse capital in exchange for a portion of the claim’s potential future recovery.
- Judgment preservation insurance –regardless of what happens on appeal or in subsequent proceedings, ensures the plaintiff will recover an agreed-upon amount of the judgment or award it has obtained.
- Contingent fee insurance – mitigates the financial risk that the law firm will not recover fees in a commercial case taken on a contingency.
- Class action settlement insurance – the only post-litigation insurance product on the market that allows companies facing class action litigation to mitigate, cap, and transfer the financial risk of settlement in existing class litigation to an insurance company.
- Litigation buyout insurance – allows companies to successfully ring-fence threat or existing litigation exposure and transfer the full financial risk. In the context of an M&A transaction or financing round, this solution negates the requirement for use of escrows or indemnities, providing certainty and finality to both parties to the transaction.
- Attorney fee factoring.
This content was originally published on Litigation Finance Journal.