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**Litigation finance allows people to buy shares of lawsuit outcomes through financing the legal fees for lawsuits upfront.** The practice was pioneered in Australia, since Australian class action affairs are opt-in versus opt-out (meaning every person affected must testify to get the ball rolling), and it soon became apparent that most common people don’t have the means to go up against big, malicious companies.

Soon, litigation finance emerged as a niche yet very high returning asset class, and large funds such as [Burford Capital](https://www.burfordcapital.com/) took to the seen as leaders in domestic litigation and international arbitration financing. Not long ago, though, the act of funding lawsuits not only became investment-driven, but also philanthropic, with high net worth individuals backing people’s litigations in order to help change policy around something they care about, or put a malicious company or person in their place.

The main buckets of litigation financing are as follows:

1. Specific lawsuit financing
2. “Angel Investors”
3. Funding law firms, essentially acting as a bank for law firms

## Case #1: Underwood Ranches vs. Huy Fong Foods
### Win: $23M
#### Investment ROI: ~2X

Underwood Ranches, a family farm in Ventura County, California, had been supplying jalapeño peppers to Huy Fong Foods for nearly 30 years, enabling the production of the popular Sriracha hot sauce. The partnership was thriving, with Underwood Ranches growing over 100 million pounds of peppers annually on 1,750 acres, with Huy Fong as its primary customer.
However, in 2016, Huy Fong abruptly terminated the relationship without prior notice, leading to a devastating impact on Underwood Ranches. The farm lost 80% of its revenue and was forced to lay off 50% of its employees. Underwood Ranches responded by filing a lawsuit against Huy Fong, alleging breach of contract, intentional misrepresentation, concealment, negligent misrepresentation, and intentional interference with contractual relations.
In July 2019, a jury found Huy Fong liable for breach of contract, intentional misrepresentation, and concealment, awarding Underwood Ranches a substantial $23.3 million. However, the legal battle was far from over. Huy Fong appealed the decision, and by that time, Underwood Ranches had already suffered significant financial losses and incurred substantial legal expenses.


As a small business, Underwood Ranches faced a daunting challenge. It lacked the necessary funds to sustain its operations and cover additional legal fees during the lengthy appeal process. The risk of not being able to collect the recovery for up to two more years posed a significant threat to the farm's survival, especially considering the additional hardships brought about by the COVID-19 pandemic.


To address the financial burden and uncertainty faced by Underwood Ranches, Burford Capital stepped in to provide legal finance. In February 2020, Burford offered an advance of $4 million from the expected recovery to Underwood Ranches through a monetization deal. This injection of immediate liquidity not only de-risked the appeal process but also played a vital role in the farm's survival during challenging times.


Thanks to legal finance, Underwood Ranches not only survived the legal battle but also used the immediate capital provision to invest in its future. Instead of being forced to close the business or lay off more workers, the farm could retool its operations. Underwood Ranches seized the opportunity to diversify its product offerings by launching its own line of hot sauces, including a Sriracha sauce, which began selling at farmers markets in Ventura County.

## Case #2: Hulk Hogan vs. Gawker Media
### Win: $140M
#### Investment ROI: ~4X*

Gawker Media, known for its audacious and provocative journalism, found itself embroiled in a media firestorm. The company published a sex tape involving Terry Bollea, the famed professional wrestler better known as Hulk Hogan. Arguing that his privacy had been egregiously violated, Hogan filed a lawsuit against Gawker, seeking redress for the harm caused by the publication of the intimate video. The case swiftly caught the public's attention due to the prominence of the individuals involved and the questions it raised about the limits of media intrusion.

Behind the scenes, a mysterious figure emerged as a secret benefactor for Hogan's legal battle against Gawker. That person was none other than Peter Thiel, a prominent Silicon Valley figure and co-founder of PayPal, Palantir and Founders Fund. Thiel harbored a deep-rooted animosity towards Gawker, stemming from an incident years prior when the media outlet outed him as gay without his consent. Thiel's support for Hogan's lawsuit presented an opportunity to not only vindicate Hogan but also to exact his revenge on Gawker for the harm he believed it had caused him personally.

Since this lawsuit was never securitized, Theil’s contribution of $10M toward the plaintiff side of this litigation was a no-strings-attached donation.

## Case #3: Financing law firms
#### Investment ROI: ~45% IRR

Many litigation financing firms, such as Burford Capital, trend toward raising larger amounts of capital for larger cases, and rarely touch cases with less than $5M in investment opportunity. Now, many are underwriting not only the return of individual cases, but also the return of law firms as a whole. This allows them to lend more capital than traditional banks, while allowing firms to stabilize their cash flows despite handling multiple different fee arrangements on cases.

In all, litigation financing is a relatively new field of finance, and one that policy is rapidly developing around.



How an unstructured asset class unlocks a new way to enable policy change, investing in beliefs, and stand up for others

Intro To Litigation Financing


Welcome to Leginar. We're the first platform that allows anyone to invest in lawsuits, earn on settlements, and access litigation funding for an affordable cost. We're a platform for investors, attorneys, and litigants alike to get better, more equitable terms for pursuing legal recourse and stay on top of the lawsuits people are pursuing right now in matters you care about.

## Hold up, what's “Legal Investing”? ## 

Legal investing is the practice of buying shares of lawsuits. It's a subsection of legal financing that allows people pursuing lawsuits to use the value of their potential winnings to finance the lawsuit upfront. This is great for attorneys and plaintiffs alike, who can both offload the risk of the lawsuit onto 3rd parties, allowing them to be paid by the hour without having to work on contingency (without payment until the lawsuit concludes).

## Litigation finance outperforms on a multiple of invested capital basis ##

![litigation_returns](/images/litfin_returns.svg "litigation_returns")

As an asset class, legal investing is new and rapidly becoming part of how the world conducts legal practices. It was previously only accessible to litigation financing funds to invest in, until now.
Leginar is the first platform to use Regulation Crowdfunding (Reg CF) to let anyone invest in this asset class. Traditionally, only hedge funds, big banks, and private funds are able to access litigation finance opportunities, despite it directly impacting consumers and having a historically high return.


## A Brief Background on Litigation Financing ##

With over $3T/year in total legal expenses, many companies, plaintiffs, and law firms alike seek out litigation finance as a means of alleviating expenses and operational processes that they deal with everyday.
Treating litigations like assets was popularized in the early 2000s, when multiple large funds took to the scene worldwide. There's currently 40-50 dedicated litigation finance funds in the U.S., and among them hold an estimated $13.5B AUM (that's ~$300M in each fund on average!)*. Large financial institutions, like JP Morgan, have also partaken in deals. The total international arbitration market is much larger, and often facilitates deals of $1B+ multiple times per year.
Litigation financing takes place in a variety of methods, including buying “equity” in the future settlement of a lawsuit, financing law firms directly, issuing loans that let law firms use current case payouts as collateral, and much more. LitFin companies often work closely with law firms and clients to underwrite the value of their case, and are therefore preferred partners over taking generic bank loans. Some law firms will even raise entire funds to finance their legal work — Burford Capital was the first to finance $130M to a law firm to cover their contingency-based work.*
The industry has been growing rapidly recently, with more countries acknowledging 3rd party finance as a trusted part of the legal system. We at Leginar believe that this asset class, being so fundamentally part of people's right to justice, should also be one that's possible for people to invest in, earn from, and access when they need means of legal recourse.

## How do I get started? ## 

Creating an account on Leginar is easy! Just sign up, then once you're on our platform, you'll have the ability to browse open lawsuits, apply for funding, or invest in lawsuits.

At Leginar, we exist to:
1. Help people earn returns on investing in litigation that outcompete traditional forms of investing
2. Give people and businesses the best terms for accessing legal capital
3. Drive forward the adoption and normalization of litigation finance, as well as make the legal processes less scary and more community-oriented


Introducing Leginar, a platform to invest in litigation.

Introducing Leginar





**Effective Date: September 8, 2023.**

 Welcome to Leginar! This Privacy Policy is designed to help you understand how we collect, use, disclose, and safeguard your personal information. By using our platform and services, you consent to the practices described in this policy.

## 1. Information We Collect ##
### 1.1 Personal Information: ###

Name
Contact Information (email address, phone number, mailing address)
Financial Information (bank account details, transaction history)

### 1.2 Usage Information: ###

Log Data (IP address, browser type, pages viewed)
Device Information (device type, operating system, unique device identifier)

### 1.3 Cookies and Similar Technologies: ###

We use cookies and similar technologies to enhance your experience and gather information about your interactions with our platform.

## 2. How We Use Your Information ##

We use the collected information for the following purposes:

1. To facilitate and process litigation financing transactions.
2. To provide customer support and respond to inquiries.
3. To improve and optimize our platform and services.
4. To send you updates, newsletters, and marketing communications (you may opt out at any time).
5. To comply with legal and regulatory obligations.

## 3. How We Share Your Information ##

We may share your information with the following parties:

1. Service Providers: Third-party service providers who assist us in delivering our services.
2. Legal and Regulatory Authorities: In compliance with applicable laws and regulations.
3. Affiliates and Business Partners: With whom we have strategic relationships.

## 4. Security Measures ##


We implement industry-standard security measures to protect your personal information from unauthorized access, disclosure, alteration, and destruction.

## 5. Your Rights ##


You have the right to:

1. Access and review your personal information.
2. Correct any inaccuracies in your information.
3. Request deletion of your information (subject to legal obligations).
4. Opt out of marketing communications.

## 6. Children's Privacy ##


Our platform is not intended for use by individuals under the age of 18. We do not knowingly collect personal information from minors.

## 7. Changes to this Privacy Policy ##


We may update this Privacy Policy to reflect changes in our practices or for other operational, legal, or regulatory reasons. We will notify you of any material changes.

## 8. Contact Us ##

If you have any questions or concerns about this Privacy Policy or our privacy practices, please contact us at vishnu@leginar.com.



Privacy Policy for Leginar - Consumer Litigation Financing Platform

Leginar Privacy Policy

**Last Updated: September 8, 2023.** 
 Welcome to Leginar, a platform providing consumer-focused litigation financing services. Please read these Terms and Conditions carefully before using our platform. By accessing or using Leginar, you agree to be bound by these terms. If you do not agree to these terms, please do not use our platform.

## 1. Definitions ## 

- "Platform" refers to the Leginar website, mobile application, and associated services.
- "User" refers to any individual or entity accessing or using the platform.
- "Lender" refers to any party providing funds for litigation financing through the platform.
- "Litigant" refers to any party seeking litigation financing through the platform.

## 2. Eligibility ##

By using Leginar, you represent and warrant that you are at least 18 years old and have the legal capacity to enter into these terms. If you are accessing the platform on behalf of an entity, you represent that you have the authority to bind that entity.

## 3. Services Offered ##

Leginar provides a platform for connecting litigants with potential lenders for litigation financing. Leginar does not provide legal advice and is not a law firm. We do not guarantee the success of any legal case or the availability of funding.

## 4. Application and Approval ##

Litigants may apply for litigation financing through the platform. Approval is at the discretion of potential lenders, based on their own criteria. Leginar is not responsible for the decisions made by lenders.

## 5. Funding and Repayment ##

If a litigant is approved for financing, funds will be provided by the lender according to terms agreed upon between the litigant and lender. Repayment terms, including interest rates and repayment schedules, will be outlined in a separate agreement between the litigant and lender.

## 6. Fees and Charges ##

Leginar may charge service fees for facilitating the transaction. These fees will be clearly communicated to both litigants and lenders before the agreement is finalized.

## 7. Dispute Resolution ##

Any disputes arising from the use of Leginar shall be resolved through arbitration in accordance with the rules of the American Arbitration Association.

## 8. Privacy ##

Please review our Privacy Policy for details on how we collect, use, and disclose information.

## 9. Intellectual Property ##

All content on Leginar is protected by intellectual property laws and may not be used without explicit permission.

## 10. Termination ##

Leginar reserves the right to terminate or suspend access to the platform at any time for any reason.

## 11. Amendments ##

We may update these terms from time to time. The most current version will be posted on the platform.

## 12. Contact Us ##

If you have any questions about these terms, please contact us at vishnu@leginar.com.



Terms and Conditions for Leginar, a platform to invest in litigation.

Latest Entries

Intro To Litigation Financing

Introducing Leginar

Leginar Privacy Policy

Terms And Conditions