Reuters - Video

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

Investing 201

How to cash in on lawsuits - Investing 201

Tuesday, Apr 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.

How to cash in on lawsuits - Investing 201

Tuesday, Apr 30, 2013 - 02:30

Top News »

Money »

S&P 500 to new record on improving economy S&P 500 to new record on improving economy

Fri, Aug 29, 2014 - (2:31)

Finding meaning in the S&P 500 2000 mark Finding meaning in the S&P 500 2000 mark

Mon, Aug 25, 2014 - (2:35)

S&P falls back from record high S&P falls back from record high

Fri, Aug 22, 2014 - (1:35)

S&P 500 closes at new high S&P 500 closes at new high

Thu, Aug 21, 2014 - (1:24)

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

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)

Moving Pictures »

Images of August Images of August

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

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)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)