Litigation Funder Juridica Pulls Back After Bad Bets
As litigation finance continues to gain ground, funding pioneer Juridica Investments said it will halt investments in new cases and cut costs in the wake of courtroom setbacks.
November 19, 2015 at 09:28 AM
6 minute read
Juridica Investments Ltd., one of a handful of major commercial litigation funders, said Wednesday that it is halting investments in new cases and cutting costs in the wake of courtroom setbacks. The news comes amid accelerating interest in litigation funding, including at many Am Law 100 firms.
The Guernsey-based company announced that it has decided to freeze its portfolio and focus on existing investments at the prompting of its shareholders. Juridica is one of just three publicly listed litigation funders worldwide, and it helped to pioneer the business in the U.S. market. It currently has $200 million in assets under management, the company reported.
The immediate trigger for Juridica's move came on Nov. 16, when the fund revealed that it was taking a loss on an investment it had made in a trade secrets dispute. The funded claimant company, which Juridica did not identify, won a meager $2 million jury verdict in a case in which Juridica had invested $3.5 million and had projected a $9.4 million recovery.
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