Litigation Finance for Commercial Cases
VLF helps corporations, businesses and institutions obtain non-recourse financing to initiate and pursue meritorious legal claims. This capital allows claimants to retain effective counsel, mitigate the financial risks associated with prosecuting legal claims, monetize claims as assets, free-up working capital, keep legal expenses off corporate balance sheets and obtain a recovery that would otherwise be unattainable.
VLF helps law firms, both large and small, with various strategic solutions such as monetizing cases for growth and operations, presenting current clients with strategic funding options to pursue their claims while managing the financial risks inherent in litigation, providing funding to potential new clients that will allow them to obtain the sophisticated representation necessary to fully address the extent and complexity of their claims and deepen existing client relationships.
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VLF utilizes proprietary technology to take an objective, scientific approach to case risk analysis.
What is Litigation Financing?
In 2007 a new type of financing option began to acquire momentum. Commercial litigation financing provides capital to a plaintiff in a commercial lawsuit to cover litigation costs, such as attorney fees, in exchange for a percent of any judgment or settlement.
This approach substantially levels the playing field for inadequately funded litigants facing adversaries who use their finances as an advantage. Litigation financing allows meritorious lawsuits to proceed when they otherwise may not be able to.
Litigation financing can also be used as a strategic risk management tool to allow litigants to manage the financial risks inherent in pursuing litigation while using their capital to run and expand their businesses.
What are the Benefits?
Litigation financing is non-recourse funding. If the litigant’s claim fails they owe nothing to the funder, the funder does not receive any payment, and its investment is lost. Litigation financiers only obtain a return if the client is able to achieve a satisfactory settlement or damage award. Because of the substantial risk that the funder assumes, litigation finance companies typically seek returns that would be equivalent to those common in contingency fee arrangements.
The Need for Legal Financing
Complex commercial litigation is expensive, often prohibitively so. Many litigants with strong cases may not have the financial means to pursue a meritorious case or are forced to settle on highly unfavorable terms simply because they do not have the funds to proceed. Other times, corporations have the financial means but do not want to take on the risks inherent in pursuing a lawsuit.
Vinson Litigation Finance is here to help bridge that gap, evaluate your risks and get your case financed.
Is it Right for My Case?
Vinson Litigation Finance provides capital for meritorious commercial litigation that we determine has 1) a high likelihood of prevailing based on the case’s merits and 2) a high probability of achieving a satisfactory recovery. Cases we become involved with typically have a potential recovery of at least $8mm dollars.
The mechanisms by which a funder analyzes a case will differ from company to company. At Vinson Litigation Finance, we employ proprietary technology that takes an objective, scientific approach to case risk analysis. If our underwriting process indicates that a case is likely to have a financially successful outcome, the claim is then presented to our investment committee. The investment committee usually has the last say on whether to fund a case or not.
Claimants seeking funding through VLF afford themselves the opportunity to obtain a rigorous analysis of their case before substantial resources have been expended. Regardless of the end result, the benefit of having a litigation funder conduct this type of assessment is invaluable.