Litigation Finance for In-house Legal Departments

In-house legal departments face tremendous financial and operational pressure.

Most general counsel believe that technological modernization and more effective management of spend on outside counsel could result in cost savings. But most lack the resources to actually bankroll modernization and more effectively manage outside counsel. Companies experiencing these challenges—and even those not—may decline to pursue high-value litigation that could generate tremendous returns.

Litigation finance is a solution to these problems. Funders like Woodsford provide capital for fees and costs to pursue commercial litigation in exchange for a share of the eventual recovery. The funding is non-recourse—meaning the funder receives its deployed capital and return only if the litigation results in a recovery.

Companies use litigation funding to pursue new or ongoing litigation at no cost. The funder assumes the financial risk of loss and there generally exist no litigation expenditures to report in—and drag down— the company’s financial statements. A win vindicates the rights of the company and yields possibly massive financial returns, thereby eliminating perceptions of legal departments as mere “cost centers.” What is more, transferring litigation expenditures to a funder enhances budget stability and predictability. It also creates much needed cost savings, which legal departments can reallocate to more pressing objectives, such as investments in the technology and people needed to manage mounting workloads and budget restrictions

You can read our whitepaper, Litigation Finance for In-house Legal Departments online here or you can download the PDF here.