$25M Partnership with Multiple Plaintiffs in Pre-trial Antitrust MDL
LFG partnered with several corporate plaintiffs who had filed claims in a large surcharge antitrust case, which came through LFG’s relationships with two prominent litigation firms. The plaintiffs varied in size (Fortune 500 to regional companies), with different internal needs for funding. While their reasons may have differed, what they had in common was the desire to hedge against the risk of loss and monetize a portion of their interest in the litigation, which had been ongoing for several years. We worked with the two firms representing the plaintiffs in conjunction with each of the plaintiffs’ internal legal departments to provide a total of $25M in non-recourse financing.
This strategic partnership between LFG and the plaintiffs allowed each of the plaintiffs to:
- Shift the risk of loss and durational risk onto LFG;
- Immediately realize and use millions in previously inaccessible capital on new business ventures and other internal purposes; and
- Receive an external audit of their legal claims and cases through meaningful interaction with LFG’s underwriting team and external counsel.
Insurance-Backed Patent Campaign
LFG partnered with a tech firm that obtained multiple patents deemed standard essential patents for certain technology. The company wished to prosecute a licensing and litigation campaign regarding infringement of these patents, but did not have adequate financial resources to pay the insurance premium or fund the litigation campaign.
LFG helped the company obtain a term litigation insurance policy that guaranteed $35M in proceeds from the patent campaign over a period of six years. With LFG’s $16.5M facility, the company was able to pay for the insurance premiums as well as litigation and operational expenses, while its counsel litigated the campaign on full contingency.
$40M Strategic Investment in Patent Infringement Dispute on Appeal
LFG entered into a strategic financing partnership with a market-leading enterprise technology private equity sponsor and holding company with approximately $80B in assets under management. One of the firm’s portfolio companies was involved in a patent infringement dispute with a direct competitor, having obtained a significant verdict. The firm sought a solution to reduce its exposure to a zero-out risk on appeal and limit its ongoing legal costs and expenses with its AmLaw 10 law firm counsel. We worked with the firm to provide a $40M non-recourse advance based on its interest in the litigation within a 3-week window.
The strategic partnership between LFG and firm allowed them to:
- Shift the risk of loss on appeal at the U.S. Court of Appeals for the Federal Circuit;
- Resist the need to call capital from its LPs to fund litigation costs and expenses;
- Utilize a portion of the funds for other internal purposes; and
- Provide much-needed operating capital to the firm’s portfolio company involved in the litigation.