Analyzing Offers for Non-U.S. Securities Claims

The excess funding capital fueling growth has created a third option for investors – selling their claims for cash – and is opening doors for participation by capital sources unable or unwilling to underwrite entire cases.

 

Non-U.S. recovery efforts have historically involved either doing nothing or suing and possibly obtaining compensation after years of litigation.  That’s changing.  The excess funding capital fueling growth has created a third option for investors – selling their claims for cash – and is opening doors for participation by capital sources unable or unwilling to underwrite entire cases.

Going forward, we expect this overfunding situation to continue and that funds will receive more offers for claims.  So it is worth considering, as we do here, a framework for how such offers – on a time and risk adjusted basis – compare to the currently available options: doing nothing or suing and possibly recovering years later.