Lexcapital’s Code of Ethics was drawn with the support of the Legal Department of the University of Turin.
This Code of Ethics (hereinafter the “Code”) was approved by Lexcapital s.r.l. – Benefit Corporation (hereinafter “Lexcapital”) with a decision from its Board of Directors on 6 June 2022
The Code is made available to customers and third parties who interact with Lexcapital by publishing it on the company’s website at www.lexcapital.it
The Code is made available in the same way, or by delivering it directly to all Lexcapital employees, board members, manages, and collaborators.
PREAMBLE
This Code sets the principles of conduct that board members, managers, employees, and all collaborators of Lexcapital must follow during their activities to assess, acquire, and sell claims or causes of action (res litigiosa), both in Italy and abroad.
MISSION
Lexcapital assesses, acquires, and sells res litigiosa of any nature, including by planning, developing, and managing a technological, electronic, and documental infrastructure or, more simply, a digital platform for litigation funding, called Lexcapital Litigation Assessment (LLA).
VALUES
3. RAPPORTI CON I CLIENTI E I LORO RAPPRESENTANTI TECNICI
In the performance of its Mission, Lexcapital undertakes to conduct itself in a way that is characterised by transparency, confidentiality and loyalty.
A. TRANSPARENCY
3.1 Lexcapital advertises its services in a clear and unambiguous manner, providing its interlocutors with all required information and offering maximum transparency, including information on the adequacy of its share capital. Specifically, the up-to-date parameters to calculate the amounts due to the res litigiosa assignee, based on the estimated value of the case assigned, will be published in the relevant section of Lexcapital’s website.
3.2 During the due diligence stage, Lexcapital provides its interlocutors with any information that may reasonably be perceived as a potential cause of conflict of interest. This includes but is not limited to: interaction with the other parties in the proceedings and their solicitors, or interactions with arbitrators or the mediator.
3.3 Lexcapital submits its contract proposal in writing, in Italian, or in a foreign language understood by the counterpart, in a clear, easy to comprehend manner.
3.4 Lexcapital contract proposal states clearly and unequivocally the circumstances in which Lexcapital can withdraw from the agreement, the applicable notice terms, and the consequences of the withdrawal.
3.5 Lexcapital contractual proposal states clearly and unequivocally whether negotiation or conciliative proposals require prior consent from the assignor.
3.6 La proposta contrattuale di Lexcapital precisa se il cedente dovrà contribuire alle spese di lite della controparte, nel caso di soccombenza nel giudizio relativo al diritto controverso ceduto e se, in tal caso, sussiste un obbligo assicurativo del cedente contro i rischi di causa (soccombenza);
3.7 Lexcapital contract proposal states clearly and unequivocally the consequences of signing the assignment of claim agreement with regard to the relations between the assignor and their legal representative of choice. For example, it expressly states whether Lexcapital must be regularly informed about the progress of the case from the assignor’s solicitor and whether it will have access to the documents pertaining to the case.
3.8 Lexcapital will request from the assignor only the amount agreed in the assignment of claim contract, unless the assignor is in breach of contract.
RESPECT AND FAIRNESS
3.9 Lexcapital invita il potenziale cedente a farsi assistere da un avvocato di fiducia, in particolare per le vicende giuridiche particolarmente complesse, anche durante la fase di due diligence.
3.10 Lexcapital protects the interest of the assignor with diligence for the entire duration of the litigation procedures.
3.11 Lexcapital shall put the assignor’s interests before its own, notwithstanding the option of reserving the right to accept negotiation or conciliative proposals (point 3.5 above).
3.12 Lexcapital shall not ask from the assignor’s solicitor anything incompatible with the rules of professional conduct.
C. CONFIDENTIALITY
3.13 Lexcapital shall treat as confidential any information pertaining to the customer or third parties acquired during the due diligence stage or during the execution of the assignment of claim agreement, with the exception of any information that i) was already public and/or legally in Lexcapital’s possession at the time of the disclosure, or ii) Lexcapital became aware of without violating the assignment of claim agreement.
D. PERSONAL DATA AND PRIVACY
3.14 Personal data will be processed fairly and in compliance with the applicable laws and regulations.
3.15 Personal data pertaining to third parties – customers, employees, or others – shall be processed in compliance with all applicable laws and regulations.
3.16 Personal data will be collected, processed, and shared with third parties only for specific, legitimate purposes and when strictly necessary (for example, to forecast the chances of a successful resolution).
FINANCIAL ADEQUACY
Lexcapital subordina la sottoscrizione di un contratto di cessione della res litigiosa alla verifica della propria adeguatezza finanziaria. In particolare, Lexcapital dovrà verificare di disporre di risorse finanziarie adeguate ad adempiere le obbligazioni derivanti dai contratti di cessione sottoscritti per tutta la durata del giudizio, inclusa la fase delle impugnazioni.
5. BREACHES OF THE CODE
As any unethical or unlawful conduct would damage the relationship of trust between Lexcapital and its stakeholders, seriously damaging its image, reputation, and credibility, compliance with the provisions of this Code constitutes an essential part of the contractual obligations of Lexcapital employees and collaborators.
6. HOW TO REPORT A BREACH (Whistleblowing)
Reports can involve violations or alleged violations of the Code or potentially critical situations.
Reports made in good faith can be submitted, anonymously or otherwise, through the channels provided by Lexcapital:
e-mail: whistelblowing@lexcapital.it
Post, including registered mail: Lexcapital S.r.l. – Benefit Corporation, Via Emilia, 14, -65122 – Pescara, Italy
Reports must be supported and substantiated by specific and consistent facts. Facts pertaining to the alleged breach must be described as clearly and comprehensively as possible to allow the relevant investigations to be carried out and, if possible, they must be adequately documented.
Lexcapital shall not tolerate any form of repercussion against anyone reporting a breach of conduct in good faith, or participating in an investigation pertaining to such a breach, and ensures, within the limits of the law, the anonymity of the reporter and the alleged perpetrator and maximum confidentiality about the information in the whistleblowing report.
7. FINAL PROVISIONS
This Code is valid from the date it is approved by the Board of Directors.
The Code is periodically reviewed; all amendments and integrations must be approved by the Board of Directors and duly published on Lexcapital’s website.
When it comes to complying with the principles set by this Code, recipients who find themselves in a position of authority are required to monitor compliance and lead by example.
