Why You Need Litigation Funding Services?
You may ask yourself “why do I need the litigation funding services of Verum?” With that the answer is quite simple. Going to court and litigating can take years before a decision or a settlement is made. With all of the money that was used for experts, other lawyers, paralegals, filing paperwork, and many other costs, including those associated with cases being filed in court, is tied up in the case till the settlement and or case is settled. This financial strain can impact both plaintiffs and defendants, making it difficult for any law firm—be it a sole practitioner or a huge law firm—to manage ongoing expenses. After a decision or settlement is reached, the process of enforcement is necessary to recover any awarded funds.
Who Should Use A Litigation Finance Company?
It used to be the thought that litigation funding services were just needed for smaller plaintiffs that lacked the resources (financially that is) to go after the “big dogs” and if it was still 10 years ago this would still be the case. Now litigation financing is a huge business (a multi-billion dollar business) and is used not just by small firms but now with the largest law firms in the nation. Investors are increasingly looking to invest in litigation funding as an alternative investment opportunity, viewing it as a way to diversify their portfolios. Litigation funding is considered a strategic investment by many financial institutions.
With that, we know that the litigation funding firms are here to stay. However, it is important to ensure transparency about all parties involved in the funding process to address concerns over influence and control.
Successful litigation funding relies on a skilled team and strong partnerships between law firms, finance companies, and their partners.
Is Litigation Finance Still Just For Plaintiff’s?
As of late, litigation funding for defense has started to become a new option with litigation financing firms or brokers such as Verum. So how does it work? First, the law firm, the finance company, and the client must enter into a formal contract that outlines the terms and conditions of the funding arrangement. The funder typically has a financial interest in the outcome of the case. For example, if the successful outcome in a bench trial is that the defense only has to pay 3 million on a 13 million lawsuit, then the defense would have to pay the non-recourse advance back with the fees. Litigation funders do not owe a fiduciary duty to the client, unlike attorneys, whose responsibility is to act in the client’s best interests. Disclosure of the funding arrangement may be required by courts or regulatory authorities to ensure transparency.
If it was a 4 million settlement on the 13 million lawsuit, then the defense would not have to “give back” the non-recourse advance on the case. Of course, the case that you bring to us would be completely different than the example above and would need to go to a group of underwriters to see what could be done, but it is a new avenue that was not open before and is quickly becoming a new way to once again even the playing ground. Litigation funding can also be used for cases on appeal, which may have different financing considerations.
Is There Anything Else That The Funding Can Be Used For?
Is used to be thought that when getting the litigation funding services that is was to only be used for “litigation” and this is not the case. As of late we have seen it be used for growing a small firm into a large one or a large one growing into a bigger one. It has been used to hire more staff, business development, grow into a larger location, file more cases or even used to help market the firm to attract new clients. Litigation funding can also support firms in overcoming challenges related to growth, case management, and regulatory compliance. It is commonly used to pursue class action lawsuits and intellectual property disputes, providing resources for complex and high-stakes cases. Additionally, litigation funding can facilitate financial recovery for law firms and clients by enabling them to pursue claims they might otherwise not afford. It can also help address risks such as fraud in complex legal cases, ensuring greater integrity and transparency in the process. So when using a legal finance company (I.E. Verum Funding) it can be that the sky is the limit.
The Litigation Funding Process
The process of securing litigation funding begins with a comprehensive assessment of the claim’s merits by the litigation funder. Once the case is deemed viable, the parties enter into a funding agreement that outlines the terms of financial support. Under this arrangement, the litigation funder provides the necessary capital to cover legal costs, and in return, the funder receives a percentage of any settlement or judgment if the case is successful. Importantly, this is a non-recourse funding arrangement—if the claim does not succeed, the claimant owes nothing to the funder. This structure allows law firms and companies to maintain control over their litigation strategy while minimizing financial risk. Leading litigation funders, have pioneered these solutions, offering both single-case and portfolio funding options to help claimants and law firms achieve success in a variety of jurisdictions.
Non-Recourse Funding Options
One of the most attractive features of litigation funding is its non-recourse nature. With non-recourse funding, claimants and law firms are not required to repay the funder if the case is unsuccessful, making it a low-risk option for those with limited financial resources. This approach enables companies and individuals to pursue legitimate claims without putting their assets or business operations at risk. Law firms can also take on cases that might otherwise be financially out of reach, expanding their ability to serve clients and grow their practice. Leading litigation funders help to level the playing field and ensure that access to justice is not limited by financial constraints.
How Is The Litigation Funding Services Paid Out?
When you get the litigation funding services from Verum there are options on how you can get the funding.
- Tranche funding – We can set up portions of the funding to be deployed at set intervals. For example, every couple of months or at different stages in case or cases.
- Lump sum funding – If needed we can give all the funding at one time.
- Line of credit – If needed a line of credit can help with firms that have big case loads and used to help the firm be financially flexible and take advantage of growth opportunities.
In some situations, courts may require approval or oversight of litigation funding arrangements to ensure transparency and fairness in the payout process. The terms of payout are always clearly defined in the contract between Verum and your firm.
We understand that every case that comes to us is different. That is why we are flexible with the funding. After going through the legal merits of the case(s) we can help with deciding what type of funding would be most beneficial for you and your law firm from commercial litigation funding to patent litigation financing to antitrust funding. We can get the funding that your firm needs!
How Is Verum Funding Different From Other Funding Companies Or Brokers
Verum Funding is different in many ways from other litigation funding services…
- We are fast: Many funders and brokers have the same issue. It takes months to get an answer on if a case or a portfolio of cases can get funding. With us we take that away and get the answers fast.
- You can always reach us: We are always just a phone call away and you can always get ahold of somebody at Verum to answer any questions that you have.
- Updates: To make sure that you know of the progress of what is happening we provide updates 0n a weekly basis, if you need an answer now we are just a phone call away. After all you want to know that you funding that you need is moving forward. After all our services have been the building blocks of how Verum Funding has led the way in within the world of litigation funding firms.
- Access to our experts: If you need to run ideas or thought past us we can help. We have some of the most experienced litigation finance employees in the industry.
I Still Have Many Questions About Litigation Funding Services
If you still have questions or want to get litigation financing also known as a non-recourse loan from one of the top litigation finance firms please give us a call at 434-535-5229, fill out the submission form on the page, or email us at help@verumfunding.com today. Contact us so we can help you get what you need in your case to make you successful today!
Verum Funding, the leader in litigation funding services.