video 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.