Does your law firm handle securities class action cases? If so, you should probably consider settlement funding as a cash flow management solution.
The typical securities class action case takes approximately three to five years from the time the initial complaint is filed until conclusion, either with funds distributed to stockholders or by judgment or dismissal. In fact, some cases take even longer, especially when there are appeals.
Plaintiff’s attorneys representing securities class actions are faced with a unique cash flow challenge. While there is a potential for considerable profits from legal fees, it takes significant time for the law firm to receive its share of the settlement. During this time, there are numerous expenses that must be paid to ensure that both the trial and the law firm continue to run smoothly.
To win the case, it is of paramount importance to have enough money to contend with deep-pocketed defense firms. This includes having adequate funds to pay expert witnesses, discovery costs, as well as day-to-day operating expenses.
While the trial goes on, it is important to continue to grow your law firm. Business expenses, such as employee salaries, rent, new hires, and advertising are certainly not cheap, but necessary costs of doing business and expanding your case load.
To deal with this lag in payment, many firms turn to bank loans and other traditional financial products. Unfortunately, banks are usually unable to provide adequate funding, as they do not consider a firm’s case load as an asset.
Legal funding is a much more viable solution. One of the main players in the post-settlement legal financing arena is RD Legal Funding, LLC, located just outside of Manhattan. RD Legal understands that your case load is your most valuable asset, so the firm will purchase your unpaid legal fees from settled cases through its proprietary Fee Acceleration program. Settlement funds are wired within days, instead of waiting months or even years to receive payment. Furthermore, settlement funding allows you to put money back into your law firm so you can continue to operate efficiently while expanding your business.
Unlike the process for traditional loans, RD Legal’s application process is fast and simple. Just fill out the brief form at the top of this page. There are no monthly payments or upfront fees, so you owe nothing until your fee is paid. RD Legal even assumes the risk of the defendant’s non-payment, so you can take advantage of settlement funding with confidence.
If you have any questions about legal funding, please visit our frequently asked questions page. To speak with a Fee Acceleration expert, at 1-800-565-5177.