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SHIELDPAY LAUNCHES GUIDE TO EFFECTIVE LITIGATION SETTLEMENT DISTRIBUTION FOR LEGAL SECTOR

April 22, 2024

SHIELDPAY LAUNCHES GUIDE TO EFFECTIVE LITIGATION SETTLEMENT DISTRIBUTION FOR LEGAL SECTOR

In the face of increasing demand for better strategies for litigation compensation payments, Shieldpay, the payments partner for the legal sector, has created the ‘Blueprint to Distribution’; a step-by-step guide that shares best practice on how to scale efficiently and distribute best-in-class payments for claimants. 

The huge growth in litigation in recent years (total value of UK class actions alone rose from £76.6 billion in 2021 to £102.7 billion in 2022) means the legal sector must adopt strategies that will enable it to scale efficiently with the growing demand. In 2019, the average litigation revenue for a firm in the UK Litigation 50 was £82.4m. That figure had reached £110m by 2023 and is widely predicted to follow this upward trajectory.

Settlement payouts can be a complex and lengthy process without the right support and guidance. The process of distributing funds can often be overlooked until the settlement is finalised, leading to sudden complications, risk concerns and a huge administrative burden on a tight deadline.

Litigation cases are by no means finished once a settlement has been agreed. Depending on the size and complexity of the case, the distribution process can take many months, if not years. Most claimants will want the compensation due to them as quickly as possible, so firms need to plan for a successful and seamless distribution of funds well ahead of time to avoid frustration and uncertainty for their clients.

To help lawyers navigate litigation payments and adopt strategies that will reassure and build trust amongst claimants, Shieldpay’s ‘Blueprint to Distribution’ guide goes through the critical steps teams need to take throughout the case to ensure claimants receive their funds quickly and efficiently. The key to success is planning the distribution process as early as the budget-setting phase, where the payout is considered as part of the case management process to optimise for success. This process also includes developing a robust communications strategy, collecting and cleansing claimant data, and choosing the right payments partner to handle the settlement distribution.

In its guidance for legal practitioners on delivering a successful payout, ‘Blueprint to Distribution’ highlights the need for payment considerations to be aligned and collaborative throughout the lifecycle of a case, not left to be worked out at the end. Working with the right partner enables firms to understand how to design and deliver an optimal payout, taking into account the potential long lead times involved from the initial scoping of a case to the actual payout, with refinements and changes likely to occur to the requirements as a case unfolds. 

Claire Van der Zant, Shieldpay’s Director of Strategic Partnerships, and author of the guide, said: “Last year, the conversation amongst the litigation community was understandably focused on how to get cases to trial. Delays to proceedings arising from evolving case management requirements, including the PACCAR decision, caused delays and frustration amongst those actively litigating cases and striving for final judgements. 

“Fundamentally, legal professionals want to deliver justice and good outcomes for claimants. To do that, we need to think bigger than just a blueprint to trial, and consider a ‘Blueprint to Distribution’, because once a final judgement has been delivered, it doesn’t end there. Delivering a successful distribution requires advance planning and consideration to be effective and efficient. This step-by-step guide aims to help law firms, administrators and litigation funders deliver the best payment experience and outcome for claimants.” 

For the full ‘Blueprint to Distribution’ guide visit www.shieldpay.com/blueprint-to-distribution. 

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Longford Capital Doubles Down to Support American Innovation

By John Freund |

Longford Capital Management, LP today announced that it has launched the Longford Capital American Innovation Initiative to help American inventors protect their legal rights, access the U.S. legal system, and advance American innovation.

America is the greatest country in the world and Americans are achieving advancements in every facet of our lives, including healthcare, artificial intelligence, clean energy, technology, aerospace, cybersecurity, transportation, wireless communications, and many others. Intellectual property is critical to American exceptionalism and national security. American inventors are systematically the victims of intellectual property theft at the hands of foreign and domestic bad actors. Well-financed multi-national corporations steal the innovations of small and medium size American companies leaving them will little options to protect their legal rights in the expensive U.S. legal system. For more than a decade, Longford has been supporting American inventors, investing approximately $500 million to support nearly 100 intellectual property owners trying to defend their assets. These efforts have resulted in recoveries of more than $1.5 billion from patent infringers.

Take, for example, Malcolm Beyer, Jr., a graduate of the United States Naval Academy, retired Captain in the U.S. Marines, and small business owner. His company developed a communication system that increases safety and operational effectiveness for the U.S. military, law enforcement, and first responders. When his patented technology was infringed by foreign companies, he didn’t have the money to defend his legal rights in court. He turned to Longford Capital. Longford provided millions of dollars to pay his legal fees, which allowed Mr. Beyer to successfully defend his legal rights and protect his innovation. Without access to litigation finance, Malcolm Beyer’s company would not have survived.

Today, we are ramping up our efforts to support our country, American inventors, small and medium size businesses, and the advancement of American exceptionalism. The ability to protect innovation through the patent system and the U.S. legal system is essential to attract investment and encourage the best and brightest Americans to dedicate their careers to improving our lives. Longford’s funding empowers American innovation and makes America stronger. Members of Longford’s legal team are perennially recognized as leading IP strategists with an established record of developing and implementing world-class IP value creation programs for American companies.

About Longford Capital

Longford Capital is a leading private investment company that provides capital to leading law firms, public and private companies, research universities, government agencies, and other entities involved in large-scale, commercial legal disputes. Longford was one of the first litigation funds in the United States and is among the world’s largest litigation finance companies with more than $1.2 billion in assets under management. Typically, Longford funds attorneys’ fees and other costs necessary to pursue meritorious legal claims in return for a share of a favorable settlement or award. The firm manages a diversified portfolio, and considers investments in subject matter areas where it has developed considerable expertise, including, business-to-business contract claims, antitrust and trade regulation claims, intellectual property claims (including patent, trademark, copyright, and trade secret), fiduciary duty claims, fraud claims, claims in bankruptcy and liquidation, domestic and international arbitrations, claim monetization, insurance matters, and a variety of others.

Commercial Legal Innovation

Startup Founder Touts Data-Driven Funding Model

By John Freund |

A litigation funding startup founder is making the case that technology, disciplined underwriting, and alignment with law firms will define the next phase of growth in the funding industry.

In Part II of its interview series, Above the Law spotlights the founder’s views on building a differentiated funding platform in an increasingly competitive market. The discussion centers on how newer entrants can compete with established players by leveraging data analytics, focusing on select case types, and maintaining tight operational controls. Rather than pursuing volume for its own sake, the founder emphasizes a strategy built around rigorous case selection and long-term partnerships with law firms.

A key theme in the interview is the importance of underwriting discipline. The founder notes that not all meritorious cases make good investments, underscoring the need to evaluate damages models, collectability, and litigation timelines with precision. Technology plays a central role in that process, with analytics tools helping to assess risk factors and identify patterns across similar claims. This approach, the founder argues, allows the company to move efficiently while avoiding the pitfalls of overly aggressive capital deployment.

The interview also touches on market education. Despite litigation finance’s growing acceptance, misconceptions persist among lawyers and corporate stakeholders. The founder suggests that transparency around pricing, control, and alignment of interests remains critical to winning trust—particularly among firms that may be considering funding for the first time.

Commercial

AI Reshapes Mass Torts With Cost-Saving Promise

By John Freund |

Artificial intelligence is rapidly moving from a back-office efficiency tool to a central driver of strategy in mass tort litigation, with significant implications for plaintiff firms, defense counsel, and the litigation funding community.

An article in Bloomberg Law explores how AI-powered tools are transforming the economics of large-scale product liability and personal injury cases. From claimant intake and medical record review to document analysis and settlement modeling, AI platforms are enabling law firms to process vast amounts of data at a fraction of the traditional cost and time. In mass torts—where tens of thousands of claims can hinge on nuanced medical and factual distinctions—these efficiencies are particularly valuable.

According to the report, firms are deploying AI to automate the review of medical records, identify injury patterns, and categorize claimants more quickly. This not only reduces overhead, but also enhances early case assessment, helping firms determine which claims warrant full investment. On the defense side, corporate legal teams are leveraging similar technologies to assess exposure and streamline discovery. The result is a technological arms race in high-volume litigation.

While some observers raise concerns about accuracy, oversight, and ethical guardrails, proponents argue that AI can reduce administrative waste and free attorneys to focus on higher-value legal analysis. Vendors servicing the mass tort bar are also positioning AI as a way to increase access to justice by lowering the cost of bringing claims that might otherwise be economically unviable.