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Investing in litigation

A1M 8 17 June 28, 2016 at 09:12 AM
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Does anyone here have experience in investing in litigation (www.lexshares.com, trialfunder.com, etc)? Saw an offer for a free book on another site and ordered it but just curious on real world experience.

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killroy was here
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#2
this represents everything that is wrong with america.
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so i spent time making a signature. only to realize that you couldn't put an image in the signature. please enjoy the link to my signature, assuming it works.

http://imgur.com/FtBghZ2
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#3
Quote from dayv View Post :
this represents everything that is wrong with america.
Why is that? It seems that success in court is directly related to how much money the plaintiff has and that if they are underfunded they don't have equal access to justice. My company was ripped off years ago by a much larger company regarding a patent they infringed upon and we couldn't afford litigation - which would have cost us an estimated $1M-$3M - so we ended up taking a low settlement when the actual damages were 25X that amount. We had no options at the time other than putting up our houses as equity on a loan, but none of us were willing to do so. I would have loved to have had investors cover the $3M in exchange for a piece of the recovery knowing that if we lost we wouldn't owe anything.
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Last edited by A1M June 29, 2016 at 07:17 AM
Joined Jul 2005
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#4
if your lawyers believed that you would have gotten 25x, they would have covered the upfront costs and taken a higher payment on the backend.

so many lawsuits are baseless and trivial. not to mention a broken patent system.
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Quote from dayv View Post :
if your lawyers believed that you would have gotten 25x, they would have covered the upfront costs and taken a higher payment on the backend.

so many lawsuits are baseless and trivial. not to mention a broken patent system.
Our lawyers believed in the case but it could have taken years to litigate it and they couldn't afford to take the entire case on contingency as they had their own expenses. They tried securing funding from a larger firms (they all invest in each other's cases apparently) but weren't able to. I agree that there are a lot of baseless lawsuits but from the little I've investigated litigation finance it seems that if anything, it serves to act as a filter and clean up the lawsuits in the system as nobody is going to fund baseless lawsuits.

Regardless, and from an investor's and not a plaintiff's perspective, I'm very curious about the asset class as the returns are historically very high and it seems to be uncorrelated to capital markets, which is important to me so I'm curious on real world experience from anyone who's invested.
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#6
Wow I think this has got to be the biggest scam I've seen in a long time. Pay a lawyers fee and if they win you MIGHT get something back. Just when you thought lawyers could go no lower.

I can assure you, since suckers are funding this, after the lawyer takes their $800/hour fee and every other fee and expense they can dream up, there will be nothing left for you. It is a suckers bet.
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E finita la cuccagna

Liberals want you to think like them, Conservatives just want you to think!
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Quote from dealgate View Post :
Wow I think this has got to be the biggest scam I've seen in a long time. Pay a lawyers fee and if they win you MIGHT get something back. Just when you thought lawyers could go no lower.

I can assure you, since suckers are funding this, after the lawyer takes their $800/hour fee and every other fee and expense they can dream up, there will be nothing left for you. It is a suckers bet.
Just because you don't understand something doesn't make it a scam. I've since researched this significantly, read the book I mentioned earlier, and chatted with a number of investors who have done very well in litigation finance (including my brother in law).
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Quote from A1M View Post :
Just because you don't understand something doesn't make it a scam. I've since researched this significantly, read the book I mentioned earlier, and chatted with a number of investors who have done very well in litigation finance (including my brother in law).
I didn't see the book you mentioned. Was it written by those that sell this "investment"? This is shady at best and illegal at worst. It has been around for a decade or so and the jury is still out on whether it is ethical to do. Most investment advisors say not to even consider this unless you are a lawyer or have a lawyer advising you on what you are doing.

But go ahead feel free to invest, sure you could do well, "but a fool and their money are soon parted" comes to mind.
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#9
Quote from A1M View Post :
Just because you don't understand something doesn't make it a scam. I've since researched this significantly, read the book I mentioned earlier, and chatted with a number of investors who have done very well in litigation finance (including my brother in law).
Curious about the book you mention. Is there a link to it? Could you PM me?

I agree with you...it definitely seems interesting. What sort of IRR/annualized return did your brother in law obtain (if you don't mind me asking) ?

Anyway repped.
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I'm looking for Discounted DELL PROMOTIONAL GIFT CARDS. Please PM me.
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#10
My brother in law has done over 60% on all of the deals he's invested in (not online - he invested directly). Knowledge of law certainly helps in direct investment, which is why I like the sites that vet their investments instead of hosting any case in a gofundme fashion.

The free book I mentioned earlier can be ordered free here [lexshares.com] and you can read the reviews on Amazon [amazon.com]
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