U.S. consumers are a powerful group that can easily make or break a company’s success—especially since stories of a company’s missteps can quickly travel from the online realm into the real world.
While many people think of monopolies as the sole target of antitrust laws, in reality, private antitrust litigation often arises from alleged anti-competitive practices. Underlying allegations might involve claims such as price-fixing, price discrimination, trade restraint, and patent and intellectual property misuse.
Whether filed by the Federal Trade Commission, businesses, or individuals, litigation of antitrust claims is expensive, involves substantial discovery, and sometimes turns into an even larger class action matter. Law firm funding provides the resources to meet the financial needs of the firm for the litigation or firm operations.
Antitrust litigation can take years to resolve through the court system. There is often significant money at stake that companies fight hard to protect. Businesses may risk insolvency in the event of a bad verdict or an unfavorable settlement.
At the same time, consumers are entitled to the economic freedom that flows from a competitive marketplace. Thus, even ordinary citizens may have rights of action against businesses.
Without private litigation over the principles of antitrust laws, those disaffected by antitrust behaviors, and companies who are being unfairly targeted in the name of antitrust would only have federal or state government regulatory agencies to protect them.
Taking on a class action suit can be a solid business decision, but it often leaves firms with a sense of financial insecurity as they fight the case, which can drag on sometimes for years before settlement and payment are issued. Capitalizing on the financial need that comes into play during these drawn-out suits, many companies try to offer low-ball settlements which hurt both the complainants and the lawyers.
Few lawyers and plaintiffs have the patience and financial security to wait out the deep pockets of the companies accused of breaking antitrust laws. But when firms fold to get a smaller settlement, they don’t just leave money on the table—they also let the company get away with a mere slap on the wrist. With litigation funding, lawyers can make sure their firm’s finances are on the secure footing they need to push forward and turn down unworthy settlement offers.
Competition and antitrust legal finance is a non-recourse advance on a firm’s anticipated winnings. When firms work with Pravati Capital, our underwriters determine whether their case is strong enough to warrant a non-recourse advance of capital. And firms can use the money as needed, including:
