Litigation Finance for Companies

Generating Multi-Million Dollar Revenues with Funding

A company suffers wrongs giving rise to two commercial litigation claims. Using litigation financing from Bentham IMF creates the opportunity for it to maximize the value of both claims and potentially earn $23.5 million in recoveries while putting just $500,000 at risk.

Preserving Company Solvency While Protecting Key Assets

A struggling company has a strong theft of trade secrets claim against a competitor, but the case will take 3 years and cost $8M in attorneys’ fees plus $500K in costs to pursue. The company requires $1M in working capital to fund its business each year. Using litigation financing from Bentham IMF creates the opportunity for it to maintain operations for three years and earn $58 million in net revenues from the case, without assuming any financial risk.

Using Funding to Convert an IP Divestment Strategy into an IP Assertion Strategy

A company is weighing whether to divest or assert a patent portfolio being infringed by a leading manufacturer in the same industry. Divesting could yield $25M in revenues, but forces the company to sacrifice up to $100M in future revenues the patents are projected to earn over the following ten years. Pursuing the assertion campaign using funding from Bentham IMF creates the potential for the company to preserve the value of the portfolio and earn up to $200M in gross recoveries, while substantially limiting its exposure in the litigation.

 

Litigation Finance for Law Firms

Broadening Fee Arrangement Options for Clients with Plaintiff-Side Portfolio Financing

A law firm wants to offer contingency fee arrangements to clients in three cases while maintaining smooth cash flows throughout the litigation. Using litigation financing from Bentham IMF allows the firm to offer its clients a full contingency arrangement while being paid throughout the cases at a rate of 50% what it would earn if it were charging the clients by the hour.

This reduces the firm’s nonrecourse investment in the cases from $6M to $3M and creates the potential for it to earn $19.5M in net revenues should the cases result in successful outcomes.

Extending Deep Defense-side Discounts with Hybrid Portfolio Funding

A law firm wants to offer a client a 50% discount off hourly rates in a defense-side case, plus take three of the clients’ plaintiff-side cases on 40% contingency, while limiting its risk to the equivalent of offering a 30% discount in the defense-side case.

Using litigation funding from Bentham IMF creates the opportunity for the firm to do this, putting just $300,000 worth of attorney time at risk, yet standing to earn $9.5M in net revenues from the cases.