Determining claim value through an assessment of damages theories, expected duration, probability of success and expense of litigation.

Providing guidance on relevant laws, regulations, and ethics rules, and structuring transactions to minimize risk.

Tailored advice for clients considering investments in litigation finance on matter-specific considerations and litigation finance risks more broadly.

Documentation and negotiation of commercial litigation finance transactions taking into account security agreements, revenue recognition, requirements for ongoing funding, tax treatment, and the respective roles and rights of the parties.

Transactions for the sales and purchases of medical lien receivables and pre-settlement funding loans require careful negotiation of cash controls, security agreements, servicing arrangements, and relevant regulations, to balance investor security and operational flexibility. Scale’s Fintech and Financial Service Group can also assist tech-forward funders.

Navigating complex transactions with insurers that can help safeguard significant judgments against appellate and counterparty risk.

Diligence supporting judgment preservation insurance brokers, primary and contingent insurers, including identification of appellate issues, susceptibility to disturbance under applicable standards of review, potential outcomes on remand, and likely minimum recovery.

Negotiation of policy terms, including minimization of exclusions.

Diligence, contracting, and strategy designed to strike a balance between providing investors with security and oversight and supporting the law firm borrowers’ operational autonomy, ensuring that the terms align with both parties’ interests, the firm’s goals, and its growth strategy.

Creating legal structures to provide maximum alignment between investors and originators that supports a clear and predictable relationship between the parties. Structuring takes into account evaluation or risk, aggregation of claims and cases, and return waterfalls suited to the portfolio.

Ensuring that investors understand the unique tax implications of litigation finance investment and take steps to achieve favorable tax treatment.