Case Study 3

In June 2021 GRP closed a large multi-million-dollar law firm litigation finance facility to support a large-scale multi-district litigation in the US.

“The ability to assess, calculate and take risk”

GRP was presented with a highly exciting opportunity to work with a renowned pharmaceutical and medical device product liability firm. The client had established a leading position in a highly anticipated early-stage multi-district litigation and was considering the merits of bringing in external funding to help solidify its first-mover advantage and scale its client roll-up and litigation strategy. In previous cases the firm, despite spearheading litigation and trial strategy, had relied heavily on expensive client referrals from big ‘marketer’ law firms. A funding facility would therefore allow the client to significantly reduce this cost allowing the client to be more fully rewarded for its legal expertise and workload. In addition to marketing costs funding would also enable the client to expediently prepare and retain key expert witnesses and case management vendors to ensure a seamless onboarding of a larger pool of case clients.

To pull such a deal together GRP worked closely with the lead lawyers of the client to fully understanding the cash flow implications and intricacies of such a large and complex litigation. This allowed us to put in place a large multi-tranche facility that offered both a considerable upfront funding component with ongoing periodic instalments contingent of various case parameters and performance milestones.

With such a sprawling and complex case duration uncertainty presented a significant challenge given the early-stage nature of the case and the client was apprehensive about incurring high financing costs in the eventuality of a long-drawn-out litigation. GRP’s approach is always to make sure both funder and client’s goals align, thus we were eager to avoid any unequitable outcomes. Working iteratively with the client and performing detailed scenario analysis modelling we closed on an optimal solution that provided client and funder with requisite deal flexibility and pricing mechanism to suit all stakeholders needs, not just the funders.

Currently the case is progressing very well with the client now undertaking extensive discovery with first trials expected early 2022.