June 1, 2019

Law Firm Funding for Antitrust Litigation

Antitrust litigation is complex and varied. While there is the prospect of governmental action, including sanctions and criminal prosecution for violations, significant private litigation also demands the services of qualified lawyers.

Litigation in this area is time and resource intensive. Fortunately, attorneys who practice antitrust law can turn to a reliable source of capital: law firm funding.

Antitrust Litigation

While many people think of monopolies as the sole target of antitrust laws, in reality, private antitrust litigation often arises from alleged anticompetitive 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 for firm operations.

Common Challenges of Antitrust Litigation

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.

But policing the business playing field to that extent is not the role of the FTC or similar state entities. When an individual or business seeks the protection offered by antitrust legislation by filing a private right of action, it is the role of lawyers to bring the dispute before the court for resolution.

The burden on the firm representing a party to antitrust litigation can be a real challenge when it comes to the staying power that is required for this kind of litigation.

Law Firm Funding of Antitrust Matters

Few firms have liquid assets at the ready to handle the demands of antitrust lawsuits, and those that do may have other competing needs for their capital. Law firm funding can help attorneys manage these seemingly incompatible demands.

Lawsuits in this area commonly involve technical issues that relate to the particular product, service, or business in question. This often leads to expenses related to protracted and difficult discovery, a need for expert witnesses, and heavy pretrial motion practice.

Although these features can make antitrust cases lucrative for law firms, the costs involved during the pendency of these lawsuits can be intimidating. Law firm funding permits attorneys to collateralize a given case or portfolio of cases to obtain capital to fund these complex and demanding cases.

How Law Firm Funding Works

The process of obtaining law firm funding is simple and straightforward. A law firm need only provide basic information on the case or cases that are to serve as collateral. Once underwriters have verified the value of the pledged cases, the funding company offers the amount and terms of financing.

One of the main features of law firm funding is that repayment is not required if the pledged cases are unsuccessful. In other words, the risk of taking a case can be spread among the firm and the funding provider.

Finally, law firm funding does not weigh down the firm’s balance sheet or exert control over the use of the funds. The law firm remains solely in charge regarding pledged cases and the use of the funds for the firm. This financing alternative just gives antitrust lawyers the security to manage big cases effectively.

Pravati Capital has a strong history of helping law firms prevail in antitrust cases by providing the financial support they need. To learn more, contact us today by calling 844-772-8284 or by completing our online contact form.


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