Summary

1. Lawsuit results are unpredictable. New information comes out, a myriad of laws limit recovery, and parties often drop out. No one can be sure what will happen. 2. Costs of lawsuits are unpredictable. The new electronic discovery rules combined with the need to respond to whatever the other side can file makes the costs and course of the suit unpredictable. 3. Most suits are settled. Most defendants have insurance, and insurers like to settle. Counsel that can "soften" the other side and is persistent can often convince even the most reluctant of defendants to settle thus yielding a good return on an investment in a case.

Analysis

Investing in lawsuits is a risky investment, but may be worth the risk if you have some money you can afford to lose and a case looks ideal for early settlement. Be sure the defendant has good insurance.

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.