One of the central tenets of litigation funding is the importance of risk management and analysis not only during case selection, but further down the road when counsel must weigh the benefits and drawbacks of settlement. Whilst law firms bring their significant weight of experience and expertise to bear when evaluating settlement options during dispute resolution, the ability to pinpoint the exact right moment and terms under which to settle is always a challenge.
In an announcement by The Legal Tech Fund, one potential solution to this challenge is being explored, as the fund has invested in SettleIndex, a fintech company aiming to reduce risk through detailed financial modeling. The SettleIndex platform is designed to provide lawyers with the tools to evaluate the risk of any case, allowing them to visualize potential outcomes and map that against the financial risk of each option.
The value of such technology is not only present for lawyers and their clients, but also for funders eager for more ways to assess case viability and mitigate risk when financing a particular case. Being able to model not only probabilities of success, but also the individual pathways to reliable financial return could be a unique tool in a funder’s arsenal.