Got a legal beef with a well-funded company but need to help to finance your litigation? A new startup is aiming to corner a market previously untapped: lawsuit crowdfunding.
New York-based Lexshares “enables investments in legal claims,”its website writes. “By helping connect plaintiffs with capital, we level the playing field for those unable to afford access to the justice system.”
Let’s say you want to slap a company with a suit but need enough funds to take it to court. Using Lexshares, accredited investors learn more about your suit and make an equity investment in your case. If you win, investors receive a portion of the proceeds from the settlement or court judgement, often a settlement.
But if you lose your fight against a Goliath, you don’t need to pay your investors any returns.
All cases remain confidential and Lexhshares will ask your permission if a potential investor wants to learn more about your file.
How does a case get posted on Lexshares? Its FAQ section breaks it down:
Plaintiffs or attorneys apply to have their case posted on LexShares by joining LexShares as a plaintiff or attorney. LexShares’ managing member, LawShares LLC, and broker dealer, WealthForge, LLC, review the supporting case documents and determine if the case meets LexShares’ posting criteria. The review may include an examination of the legal merits, interviews with the legal and management teams as well as background checks on the relevant parties
Lexshares co-founder Jeffrey Greenberg told TechCrunch: “LexShares provides a transparent, economically rational and efficient means for connecting plaintiffs with investors to fund their commercial legal claims.”
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