This Code of Ethics (the “Code”) was approved by LexCapital s.r.l. – Società Benefit (hereinafter “LexCapital”) by resolution of the Board of Directors on November 14, 2023.
The Code is made available to clients and other third parties interacting with LexCapital by publication on the company’s website (www.lexcapital.it). In the same manner, or via direct delivery, the Code is made known to all employees, directors, executives, and collaborators of LexCapital.
1. FOREWORD
This Code regulates the principles of conduct that directors, executives, employees, and collaborators of LexCapital in any capacity must observe when conducting activities related to the evaluation, purchase, and sale of litigation rights and/or claims (the so-called res litigiosa), both in Italy and abroad.
2. MISSION
LexCapital carries out activities for the evaluation, purchase, and sale of res litigiosa of any nature, including through the development, creation, and management of a technological, IT, and documentary infrastructure—in short, a digital platform for conducting litigation funding activities, named LexCapital Litigation Assessment (LLA).
VALUES
3. RELATIONS WITH CLIENTS AND THEIR TECHNICAL REPRESENTATIVES
In carrying out its Mission, LexCapital commits to conducting itself in accordance with the principles of transparency, confidentiality, and loyalty.
A. TRANSPARENCY
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3.1 LexCapital always uses promotional messages regarding its activities that are clear and never misleading, and provides its interlocutors with all requested information with the utmost transparency, including information concerning the adequacy of its share capital. In particular, the calculation parameters for fees due to the assignees of the res litigiosa, calculated based on the presumed value of the transferred dispute, will be available—in their updated version—in a dedicated section of the LexCapital website.
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3.2 During the due diligence phase, LexCapital provides its interlocutors with all information that can be reasonably perceived as potentially giving rise to a conflict of interest. This includes, but is not limited to: relations with other parties to the proceeding and their respective lawyers, or relations with the arbitrators or mediator.
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3.3 LexCapital's contractual proposal is formulated in writing, in Italian or in a foreign language known to the contracting party, in a clear and easily understandable manner.
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3.4 LexCapital's contractual proposal clearly and unequivocally indicates the circumstances under which LexCapital may withdraw from the contract, the relevant notice period, and the consequences of withdrawal.
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3.5 LexCapital's contractual proposal clearly and unequivocally indicates whether the prior consent of the assignor is required to accept settlement or conciliation proposals.
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3.6 LexCapital's contractual proposal specifies whether the assignor will be required to contribute to the counterparty's legal expenses in the event of losing the lawsuit related to the assigned disputed right and whether, in such case, there is an insurance obligation for the assignor against litigation risks (losing the case).
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3.7 LexCapital's contractual proposal specifies clearly and unequivocally the consequences that the conclusion of the litigation assignment agreement may entail regarding relations between the party and their trusted lawyer. For example, it expressly indicates whether LexCapital must be periodically informed by the assignor's trusted lawyer about the progress of the dispute and will have access to the deeds and documents contained in the case file.
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3.8 LexCapital will not request any compensation from the assignor other than that agreed upon in the assignment contract of the res litigiosa, except in cases of breach of contract by the assigning party.
B. RESPECT AND LOYALTY
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3.9 LexCapital invites the potential assignor to be assisted by a trusted lawyer, particularly for highly complex legal matters, including during the due diligence phase.
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3.10 LexCapital protects the interest of the assigning party with the diligence of a prudent administrator (buon padre di famiglia) throughout the duration of the litigation.
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3.11 LexCapital commits to placing the interests of the assigning party ahead of its own, without prejudice to the possibility of reserving the right to authorize the acceptance of settlement or conciliation proposals (see 3.5 above).
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3.12 LexCapital commits not to make any request to the assigning party's lawyer that is incompatible with compliance with the professional code of ethics.
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3.13 LexCapital commits to respecting and ensuring compliance with the regulations on Fair Compensation (Equo Compenso) following the legislative amendment introduced by Law No. 49 of April 21, 2023.
C. CONFIDENTIALITY
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3.14 LexCapital commits to keeping confidential all information regarding the client or third parties acquired during the due diligence phase, as well as during the implementation of the assignment contract of the res litigiosa, except for information that:
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i) is already in the public domain and/or legally possessed by LexCapital at the time of communication, or
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ii) becomes known to LexCapital without any violation of the assignment contract of the res litigiosa.
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D. PERSONAL DATA AND PRIVACY
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3.15 Personal data will be processed fairly and in compliance with current legislation.
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3.16 Personal data concerning third parties, whether clients, employees, or others, will be processed in accordance with current legislation.
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3.17 Personal data will be collected, processed, and shared with third parties only for specific, legitimate reasons and to the extent deemed strictly necessary (for example, to estimate the probability of a successful outcome of the dispute).
4. FINANCIAL ADEQUACY
LexCapital conditions the signing of an assignment contract of the res litigiosa upon the verification of its own financial adequacy. In particular, LexCapital must verify that it has adequate financial resources to fulfill the obligations arising from the signed assignment contracts for the entire duration of the proceedings, including the appeals phase.
5. VIOLATION OF THE CODE
Since unethical or unlawful behavior would damage LexCapital's relationship of trust with its stakeholders, causing serious harm to its image, reputation, and credibility, compliance with the rules of this Code constitutes an essential part of the contractual obligations of LexCapital’s personnel (employees and collaborators).
6. HOW TO REPORT VIOLATIONS OF THE CODE (Whistleblowing)
Violations or suspected violations of the Code or potentially critical situations may be reported. Reports can be made in good faith, anonymously or non-anonymously, through the channels provided by LexCapital:
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Email: whistelblowing@lexcapital.it
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Mail (including registered mail): LexCapital S.r.l. – società benefit, Via Emilia, 14, - 65122 - Pescara, Italy
The report must be detailed and based on precise and consistent factual elements. The facts constituting the alleged violation must be described as clearly and completely as possible to enable the initiation of investigative activities and, as far as possible, must be adequately documented.
LexCapital does not tolerate any form of retaliation against anyone who makes a report in good faith or participates in a related investigation. It also guarantees protection for the identity of both the reporter and the reported person, within legal limits, and the utmost confidentiality of the information contained in the report (Whistleblowing).
7. FINAL PROVISIONS
This Code enters into force on the date of the Board of Directors' resolution approving it.
The Code is subject to periodic reviews; any change or addition must be approved by the Board of Directors and promptly published on LexCapital's corporate website.
Addressees who hold a position of authority are required not only to demonstrate a vigilant attitude but also to set an exemplary example regarding adherence to the rules and principles set forth in this Code.