Introducing Leginar
Welcome to Leginar. We're the first platform that allows anyone to invest in lawsuits, earn on settlements, and access litigation funding for an affordable cost. We're a platform for investors, attorneys, and litigants alike to get better, more equitable terms for pursuing legal recourse and stay on top of the lawsuits people are pursuing right now in matters you care about.
Hold up, what's “Legal Investing”?
Legal investing is the practice of buying shares of lawsuits. It's a subsection of legal financing that allows people pursuing lawsuits to use the value of their potential winnings to finance the lawsuit upfront. This is great for attorneys and plaintiffs alike, who can both offload the risk of the lawsuit onto 3rd parties, allowing them to be paid by the hour without having to work on contingency (without payment until the lawsuit concludes).
Litigation finance outperforms on a multiple of invested capital basis
As an asset class, legal investing is new and rapidly becoming part of how the world conducts legal practices. It was previously only accessible to litigation financing funds to invest in, until now. Leginar is the first platform to use Regulation Crowdfunding (Reg CF) to let anyone invest in this asset class. Traditionally, only hedge funds, big banks, and private funds are able to access litigation finance opportunities, despite it directly impacting consumers and having a historically high return.
A Brief Background on Litigation Financing
With over $3T/year in total legal expenses, many companies, plaintiffs, and law firms alike seek out litigation finance as a means of alleviating expenses and operational processes that they deal with everyday. Treating litigations like assets was popularized in the early 2000s, when multiple large funds took to the scene worldwide. There's currently 40-50 dedicated litigation finance funds in the U.S., and among them hold an estimated $13.5B AUM (that's ~$300M in each fund on average!). Large financial institutions, like JP Morgan, have also partaken in deals. The total international arbitration market is much larger, and often facilitates deals of $1B+ multiple times per year. Litigation financing takes place in a variety of methods, including buying “equity” in the future settlement of a lawsuit, financing law firms directly, issuing loans that let law firms use current case payouts as collateral, and much more. LitFin companies often work closely with law firms and clients to underwrite the value of their case, and are therefore preferred partners over taking generic bank loans. Some law firms will even raise entire funds to finance their legal work — Burford Capital was the first to finance $130M to a law firm to cover their contingency-based work. The industry has been growing rapidly recently, with more countries acknowledging 3rd party finance as a trusted part of the legal system. We at Leginar believe that this asset class, being so fundamentally part of people's right to justice, should also be one that's possible for people to invest in, earn from, and access when they need means of legal recourse.
How do I get started?
Creating an account on Leginar is easy! Just sign up, then once you're on our platform, you'll have the ability to browse open lawsuits, apply for funding, or invest in lawsuits.
At Leginar, we exist to:
- Help people earn returns on investing in litigation that outcompete traditional forms of investing
- Give people and businesses the best terms for accessing legal capital
- Drive forward the adoption and normalization of litigation finance, as well as make the legal processes less scary and more community-oriented