LexShares Case #217 Resolved


  • 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 has returned the principal with no profit.
Key Events
Date Cashflows Description
Mar 3, 2017 New Investment Opportunity – $400K
Mar 3, 2017 Capital Commitment – $10K
Mar 7, 2017 ($10,000) Deposit via ACH
Mar 21, 2017 Capital Disbursement
Nov 20, 2018 Settlement
Dec 6, 2018 Distribution of Proceeds via ACH
Dec 7, 2018 $10,000 Payment Received


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 the platform offered in the past. I liked contract disputes, which sounded straightforward enough compared to whistleblower or infringement cases.


In March 2017, LexShares posted a breach of contract case. 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 large commitment.


The case was settled outside 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 knew this case was not progressing as favorably for us, and I expected to lose my entire investment. I was pleasantly surprised by this outcome.