LexShares Case #217 Resolved

Summary

  • My 1st investment into commercial litigation crowdfunding has reached finality.
  • It has been 640 days from the time of an ACH transfer to the distribution.
  • The investment did not generate any profits.
Key Events

Backstory

This was my first litigation funding investment. I signed up on the platform in the middle of February 2017. There were no new offerings for 3 weeks. While waiting for a new case to pop up, I studied more about the common types of business litigation cases and the types of investments available on the platform in the past. I liked contract dispute cases, which sounded straightforward enough compared to whistleblower or infringement cases.

Funding

In March 2017, LexShares opened a new investment opportunity. I invested a very small amount as I did not have much cash on hand. I usually keep my cash balance very low to minimize cash drag in the portfolio. My money was still tied up in the hedge fund and I was not ready to make a big commitment.

Distribution

The case was settled out of court before proceeding to trial. This case was impaired because the testimony of an expert witness from the plaintiff was compromised. Due to lack of necessary expert evidence, the plaintiff decided to settle for a reduced amount instead of taking the case to trial with an outsized risk of complete loss. I was pleasantly surprised by this outcome as I knew this case was not going well. I expected to lose my entire investment.