Financing Shareholder And Securities Litigation
Countless individuals, companies and law firms with legitimate securities and shareholder legal claims do not act on them because of the high cost and risks that come with litigation. Securities litigation is highly specialized, requiring the application of complex securities laws. Because most cases are high stakes and involve sensitive matters, they can result in substantial damage awards and negative publicity. Pravati funding enables victims of corporate misconduct to seek reparation without the costs and risks of handling the litigation themselves.
Securities and Shareholder Funding for Companies in the U.S.
The U.S. in the past few years has seen a surge in securities and shareholder class actions, which is in large part due to an increase in litigation funding from companies like Pravati. As well, third-party funding is encouraged by U.S. regulators. Companies are looking Pravati to recover at least part of sometimes significant losses, and to take legal financing off their balance sheets. Securities funding can play a significant role in your risk management strategy and investment portfolio
Pravati legal funding is a win-win situation. Pravati helps to facilitate securities class actions, and in return litigation funding has also become more profitable for the individuals and companies involved. As well, Pravati’s expert legal team will work with you to optimize the value of your portfolio while continuing to support your investment strategy.
Ideally, your claim would have a strong legal basis and will likely pay out high enough damages so the funder, the lawyers and the claimants all profit. Funders are also attracted by class action-style group litigation. Other key benefits are that Pravati Capital provides a true alignment of interest, and a Pravati litigation funder often adds value regarding case management expertise and strategic and financial discipline.
A shareholder class action typically occurs when shareholders claim to suffer a loss – such as a falling share price – because they were misled by the company and its directors, or information was not disclosed that might have helped them avoid a loss. Historically these breaches were not pursued in the form of shareholder class action lawsuits because litigations were too expensive and individual shareholder loss was relatively small. Pravati provides funding to prosecute a claim.
Shareholders – as key stakeholders of a business—will often take drastic measures to protect their investments, resulting in significant legal exposure for both the executives of a company and the company itself. Because large investments are often at stake, shareholders are sensitive to the performance and management of companies in which they have a stake. Should the market value of a company’s share price drop due to a bad business decision or wrongful act, investors can commence litigation against those responsible.
Legal Funding Securities and Shareholder Cases
After Volkswagen was found to use a software device to rig the emissions performance of some of its diesel-engine base vehicles, company shares dropped drastically. VW shareholders filed a securities class action lawsuit in the U.S. Thanks to a litigation funding firm, investors were also able to file a German shareholder action on behalf of shareholders who purchased their VW shares in Germany. Volkswagen is a clear example of how legal funding companies are financing efforts to develop investor-focused legal remedies for victims who claim to have suffered by alleged disclosure violations.
In another case, a Google executive director in November 2017 filed a class action against the tech company claiming it illegally gathered the personal data of millions of iPhone users in the UK. The group, called GoogleYouOweUs, allege that between June 2011 and February 2012, Google bypassed the default privacy settings on Apple phones to track users’ online behaviour. Google had already paid millions of dollars to US states and the US Federal Trade Commission over the security bypass. The group secured third-party legal funding with the aim of securing compensation for about 5.4 million people in Britain used the iPhone during that time.
Funding for Law Firms
Class actions can be very profitable in the U.S. Lawyers often work on a contingency fee basis on behalf of the lead plaintiff and the class and after a successful resolution, they may apply to the court for attorneys’ fees and reimbursement of expenses. Pravati can provide financing until such monies are disbursed by the court.
When a company or institution is faced with a securities class action or shareholder derivative litigation, Pravati Capital understands what is at stake and can think outside the box to achieve resolution. Our team has in-depth experience handling securities class actions, M&A litigation, shareholder derivative litigation and private equity and portfolio company litigation. As well, the Pravati Securities team works closely with law firms who concentrate in investment management issues and regulatory compliance to provide comprehensive, strategic representation.
With the Financing Shareholder And Securities Litigation from Pravati Capital it will supply you the working capital you need to win in your lawsuit.