Securities and shareholder litigation financing
Litigation financing solutions for securities and SEC disputes.
Baker Street Funding regularly funds corporations, officers and directors involved in multibillion-dollar, securities and shareholder litigation cases. We have vast experience and expertise for both attorneys and companies.
Companies must decide things that are in their shareholders’ best interests. When they breach this responsibility or defraud their shareholders outright, the shareholders may end up involved in litigation with attorneys specialized in securities and shareholder actions to defend investors who wish to lodge a suit. Securities and shareholder litigation funding requires large-scale investments. Baker Street Funding allows companies, businesspeople, and attorneys to devote the required resources to obtain legal redress for the mistakes incurred in the commercial context.
Companies must decide things that are in their shareholders’ best interests. When they breach this responsibility or defraud their shareholders outright, the shareholders may end up involved in litigation with attorneys specialized in securities and shareholder actions to defend investors who wish to lodge a suit. Securities and shareholder litigation funding requires large-scale investments. We allow companies, businesspeople, and attorneys to devote the required resources to obtain legal redress for the mistakes incurred in the commercial context.
How it helps companies.
Conventional methods of financing set strict terms for how to use the capital obtained and may require personal assurances from one or more of the firm’s senior members. There are a variety of reasons you may benefit from help funding your claim if you have a securities and shareholder dispute:
Recruit the best legal team
Shareholder and securities dispute cases can be difficult; thankfully litigation funding means being able to recruit the best legal team without being out of pocket yourself.
Move forward with your claim
If your conflict is financial, and you can no longer afford to pay your claim, litigation financing helps you to proceed with your claim and get the money you deserve.
It has no risk
The amount we fund is expressed on our balance sheet before it is paid in full, irrespective of whether the case is resolved favorably. In the case where your claim doesn't successfully conclude, the advance won't have to be paid back.
How it helps law firms.
Litigation Funding for securities and shareholder actions tool access to capital is paramount for attorneys specializing in securities and shareholder actions. Incoming funds are continually required to pay for staffing, expert witnesses, and after taking on a contingency case to cover shortfalls. See how you may benefit from litigation funding:
A versatile financial option
The funding of law firms offers a versatile finance alternative to traditional methods of funding. This type of funding allows attorneys to meet the strict criteria of representing securities and shareholder clients without adversely affecting firm balance sheets.
Tailored for your need
Terms are tailored to the needs of each firm, and it remains responsible for both controlling the course of the proceedings and allocating the money.
Instant capital
We help in the recovery of out-of-pocket legal costs for law firms; we convert contingent interests in a litigation claim portfolio into instant capital to smooth out cash flows or finance growth.
Get started in minutes.
The process of requesting funding from Baker Street Funding is simple and successful. To clarify your financing needs and the assets planned for use as collateral, get in touch. Depending on the complexity and risk of the investment and your particular needs, our team will determine the opportunity and recommend bespoke terms. Let us help you get the funding you need to achieve the outcome you deserve, whether you are an attorney or a company.
Learn more.
Securities and shareholder actions
Companies are required to notify shareholders when they have information that can influence the share price, and issues occur when they do not fulfill this requirement. Securities and shareholder actions, because of the sheer number of shareholders, typically end up in class action suits. While this can streamline the legal process, class action lawsuits can hamper the ability of a lawyer to continue operations and market for potential clients. A corporation, especially if it is publicly traded, may have a large number of investors. The broad pool of possible plaintiffs may mean the potential for significant damages in the event of alleged corporate misconduct.
While the facts and law at issue vary significantly in these cases, all share similar features:
- Court filings for the certification of class action;
- Discovery of huge amounts of financial and corporate records;
- Proxy litigation-based documentation review;
- participation of expert witnesses;
- Multiple witness interviews;
- Costs for travel.
Securities fraud
The U.S. Securities and Exchange Commission (SEC) is responsible for protecting investors, preserving fair, orderly, and effective markets, and promoting the creation of capital. The laws regulating the securities industry are focused on the idea that before buying for as long as they keep an investment, all investors, whether large corporations or private individuals, should have access to some essential information about an investment. The SEC has the regulatory power to bring civil enforcement proceedings for breaching securities laws against persons and businesses, including:
- Insider trading
- Accounting fraud
- Stock manipulation of prices
- Providing inaccurate or misleading data on securities and the companies selling them
Securities fraud charges are investigated by the SEC and the National Association of Securities Dealers (NASD) and can result in criminal and civil penalties resulting in incarceration and fines.
Discovery and litigation funding
Discovery sought in securities and shareholder cases also requires records and documents that are deemed confidential by the corporation. As a consequence, substantial resources can be used by the parties to challenge the discoverability of such records. Firms involved in this form of litigation need to be able to handle these unique complexities of litigation. Litigation financing may assist law firms that need the capital to handle these complexities.