LexShares Case #249 Resolved

Summary

    • My 3rd investment into commercial litigation crowdfunding has reached finality.
    • It has been 1,079 days from the time of an ACH transfer to write-off.
    • The investment has lost the entire principal.
Key Events
Date Cashflows Description
Apr 13, 2017 New Investment Opportunity – $225k
Apr 13, 2017 Capital Commitment – $50k
Apr 18, 2017 ($50,000) Deposit via ACH
Apr 28, 2017 Capital Disbursement
Dec 28, 2018 Judgement in favor of the defendant
May 17, 2019 Notice of Appeal
Dec 11, 2019 Dismissal of Appeal
Mar 31, 2020 Write-Off

Funding

In April 2017, LexShares posted a breach of contract case. I scheduled recurring redemption from a hedge fund to invest a larger amount starting this month. My plan was to withdraw $100,000 every month and reinvest into a single-case litigation over a 6-month period. In order to absorb my cash flow, I had to gain access to 2 cases per month and invest $50,000 in each case.

Progress

At the end of 2018, the judge made a decision in favor of defendant. The plaintiff filed a motion for post-trial relief, but the motion was later denied. The plaintiff then filed a notice of appeal to start an appeal in May 2019. Something might have happened in the appeal process. In August 2019, plaintiff’s trial counsel walked away from the case, and the plaintiff was unable to substitute appellate counsel. The appeal was eventually dismissed for failure to obtain counsel and have counsel enter an appearance on behalf of Appellant within 21 days.

Resolution

LexShares wrote-off the entire investment at the end of the first quarter of 2020. I lost 100% of my invested capital.