Business
Burford Capital-Report on Class Action Recoveries
Burford Capital-Report on Class Action Recoveries.
About this update from Burford Capital Limited
[{"type":"text","content":"\n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n \n \n \n \n New research shows companies with large claims recover more and preserve budgets by using legal finance as part of their class action opt out strategies\n \n \n \n \n \n \n Legal finance use is 3x likelier among companies that mostly/always opt out of the class vs. those that mostly/always remain in the class\n \n \n \n \n \n \n \n \n New York City, September 13, 2022 - Burford Capital, the leading global finance and asset management firm focused on law, today releases new independent research demonstrating the value of legal finance for companies with valuable commercial class action claims. In recent years, Burford has seen an increasing number of major corporations choosing to opt out of class action lawsuits to pursue high value claims individually and has commissioned independent research to examine the trend in greater depth.\n \n Although companies are currently still more likely to remain in the class than they are to opt out, the research reveals that their reasons for doing so are economic-and solvable with legal finance, which de-risks the choice to opt out and provides a clear benefit to corporations with high value claims. As most legal finance is non-recourse, companies can receive risk-free funding to pursue meritorious claims as individual plaintiffs, as well as to accelerate the often-significant value represented by pending claims.\n \n Given the results of the research, Burford expects the trend toward opt outs will continue, with major companies choosing to rethink their opt out strategies with legal finance.\n \n \n Christopher Bogart, CEO of Burford Capital, said: \"Burford's independent research on commercial class actions demonstrates the clear benefit that legal finance provides to companies with significant claims. If you're a GC and you have a claim that's big enough to merit opting out, you should, because you'll recover more, and you can do so without budget implications by using legal finance capital. Further, your competitors who are already using legal finance are opting out three times more often. As a former GC, I recognize the importance of maintaining control and maximizing returns in litigation, and Burford works with many GCs to use legal finance to reduce risk, maintain greater c...