Reuters - Video

EDITION: U.S. | U.K. | IN

Investing 201

How to cash in on lawsuits - Investing 201

Tuesday, April 30, 2013 - 02:30

Not a plaintiff? No problem, you can still profit from big lawsuits. There are three publicly traded companies that help finance expensive litigation. In return, they stand to get huge payouts if their cases win in court.

▲ Hide Transcript

View Transcript

You can stop paying the lawyers now there's actually a way for you can cash in on lawsuits. Payouts could be huge. It's called alternative litigation finance. Fancy name for a simple investment. Wealthy investors and funds invest cash to finance lawsuits likely to produce windfall judgments or settlements. Everything from cat fights to divorces of the rich and famous if we win the case. They get a slice of the pain. -- these kinds of funds have already become publicly traded companies whose shares anyone can buy refers wanna open it focuses. On commercial case in 2012. On the investment recoveries that we saw last year we saw a 61 person. Return on invested capital in those cases here's how it works for commercial planes firms investing in lawsuits raise money from investors and investment funds. A team of litigators then screens and picks big commercial cases almost like a stock analyst for once they think and the potential for big awards. Typically antitrust intellectual property and contracts. That due diligence can cost as much as 100000. Dollars. If that extends several million dollars to their client if their client wins or settles case to get a slice of the pay out. If their clients lose they lose everything. Last November industry pioneer INF Australia's scored. When the clients that funded a group of local councils won a landmark lawsuit over -- derivatives against Standard and Poor's and ABN Amro. The judge awarded the plaintiffs 29 million dollars for losses and damages on investors can take part led by. Stocks -- three firms. Her Fredricka. You'll want their investing in the U what's the trade in London I and that very thing that. All three stocks are far outperforming their country's broader stock indices this here. I met -- accurate that gaining more than 28%. Risks include timing and liquidity. It can take years for a court decision or settlement are rated critical received vary in coverage from the analyst community and trading is thin. -- typically gets tens of thousands of trade today. In the future he may have more investment choices. Think tank ran predicts that as word gets out about the -- double digit returns. Banks and insurers may get into the game and -- to court and best.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

How to cash in on lawsuits - Investing 201

Tuesday, April 30, 2013 - 02:30

Top News »

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)