Litigation funding company stops investing in new cases
Litigation funding company Juridica has stopped investing in new cases after some disappointing returns and a drop in investor confidence.
The company announced the freeze on Wednesday, two days after it revealed a loss in a trade secrets case, the Am Law Daily (sub. req.) reports. Juridica had invested $3.5 million in the case, which produced a $2 million jury verdict.
In June, the company announced a $29.7 million write-down because of a negative ruling in an overseas price-fixing case that was upheld on appeal.
Juridica is one of three litigation funding companies that are publicly listed. It has focused on antitrust, patent and commercial cases.
The company says it will “seek to return capital to shareholders in the most appropriate manner, following the completion of investments.”