▷ Reverse Litigation Funding: passive litigation management

LITIGATION MANAGEMENT WITH OR WITHOUT A DEDICATED SPV

An alternative tool to Claim Management and Loss Adjusting activities for Companies

LexCapital introduces an innovative tool for managing the Passive Litigation of Businesses, Banks, and other Financial Intermediaries, as well as the Long-Tail Reserves of Insurance Companies: Reverse (or Defense-side) Litigation Funding.

The focus, in this case, shifts from supporting the Plaintiff (the party initiating the lawsuit) to the Defendant (the party summoned to court), through innovative tools for the Italian Market.

HOW REVERSE LITIGATION FUNDING CAN CREATE VALUE

Benefits of using Reverse Litigation Funding

Reverse Litigation Funding allows for the optimization of both Risk Fund management for Litigation, for Businesses and Banks, and Technical Reserves management for Insurance Companies. In particular, for the latter, the service stands out as follows:

Risk Mitigation

Greater performance stability, even in the face of complex regulatory and judicial scenarios

Business Information & Intelligence

Support through quantitative and statistical data and Predictive Justice digital tools.

Resource Optimization

Financial resources absorbed by Long-Tail Reserves are released.

Alignment of Interests

Remuneration aligned with the economic benefit generated for the Client.

Reduction of Internal Management and Organizational Burdens

Thanks to the network of Lawyers and Technical Consultants highly specialized in various sectors of law and economics who, from time to time, are involved in operational activities.

Unique know-how in the Italian market

Synergistic action thanks to years of vertical experience and expertise developed by LexCapital and its strategic Partners.

Reverse Litigation Funding

We are also active in Reverse Litigation Funding or Defense-Side Litigation Funding activities, where we act in support of Defendants, typically Insurance Companies operating in liability branches (third-party liability), Banks and Financial Intermediaries, self-insured Healthcare Facilities, particularly having gained experience in the innovative management of run-off litigation portfolios to accelerate their resolution and the correct provisioning of the related Reserves.

Antitrust and Private Enforcement Actions

We support Companies damaged by unlawful conduct and unfair commercial practices (Cartels), promoting initiatives to obtain compensation for damages resulting from such unlawful behavior.

Banking Litigation and Financial Operations, including Derivatives

We stand alongside anyone who has signed complex banking and financial contracts, such as Derivatives, in cases where they proved to be speculative tools and caused severe financial losses for the funded Entity. We are also active in cases of compound interest (anatocism), fraudulent behavior to the detriment of savers, usury, guarantees issued or received, nullity of mortgages, revocations of relationships, and any other irregular or unfair behavior carried out by Banking Intermediaries.

Claims in Public Works

Siamo attivi nei casi di richieste di tipo economico che le aziende appaltatrici avanzano al fine di ottenere maggiori compensi o contestare scelte dalla Stazione Appaltante a ristoro di extra costi sostenuti nell’esecuzione delle attività. Interveniamo con tecnici esperti e legali specializzati consentendo alle aziende di liberare le risorse finanziarie impiegate nella gestione dei contenziosi e di investirle in altre attività, al fine di concentrarsi meglio sul proprio core business.

Collective Actions and Campaigns

We support actions conducted by multiple individuals and groups of people, protecting common interests or homogenous rights. Our actions aim for damage compensation for all those consumers or users who have suffered a wrong.

Insolvency Procedures and Corporate Restructuring

We support the Organs of Insolvency Procedures and Companies undergoing restructuring, typically by purchasing the individual active litigation or the entire package (e.g., compensation for damages, liability actions, clawback actions, recovery plans, other complex active litigation). In this way, we enable a faster closure of procedures and facilitate the restructuring process, allowing Corporate Managers and their Advisors to be more focused.

What they say about us

CLIENT DAMAGED BY ANTI-COMPETITIVE BEHAVIOR

Head of Legal Department

“We assigned our litigious right related to a claim for damages and LexCapital fully supported us through its network of lawyers and econometric technical consultants, advancing the related costs. If we had not opted for this solution, which allowed us to obtain the financial resources necessary to carry out the proceedings, we would have had to give up protecting our rights.” Company damaged by anti-competitive behavior

LEADING LAW FIRM

Managing Partner

“Our Firm has been consulted repeatedly by LexCapital, including during the development phase of RischioLegale, and has been a user of it since the beta testing phases. RischioLegale is a flexible, easy-to-use tool, useful in estimating the costs and times associated with Litigation, and also in reporting activities aimed at our corporate clients, including those for quantifying the risk fund in financial statements.” Leading Italian Law Firm

LEADING INSURANCE COMPANY

Claims Manager

“LexCapital successfully analyzed and managed for us approximately 200 litigated claims from a portfolio in run-off, characterized by long-tail non-performing positions. About 50% of the positions assigned to us were resolved through a settlement agreement and, concurrently, the related financial resources, absorbed by the Technical Reserves, were released.” Leading Insurance Company

Direct Management of "Passive" Litigation