After the settlement is reached or the case is adjudicatedHow Does Lawsuit Funding Work?
The process of legal funding is simple. It starts when an individual has been injured and has filed a claim against a company, manufacturer or other entity after suffering loss or damage that the organization is liable for. Next, the individual must find an attorney with experience in fighting similar cases. Pravati has one of the most extensive lawyer networks that have specific expertise for your type of case. Once this individual—now considered a plaintiff—finds a litigator to take their case, it can be a while before settlement is reached or the suit is adjudicated. During this long wait and court battle, the plaintiff may find that he or she needs money in order to cover lifestyle and medical expenses. The plaintiff may even be forced to take a lower settlement offer if those funds aren’t secured. Likewise, the law firm fighting on the side of the plaintiff may need financing to continue pursuing a fair settlement, researching the case and paying the various staff members who help out. When these financial breaking points are hit, or they can be seen on the horizon, either the law firm or the plaintiff can reach out to Pravati Capital for non-recourse legal funding.
The underwriting team at Pravati reviews the entire case in order to determine the likelihood of its winning. Because legal financing is a non-recourse investment, not a loan, Pravati underwriters must believe in the strength of the lawsuit before approving the loan. If they do, Pravati advances the funds to the law firm or plaintiff thereby strengthening their financial foundation, which will only help when holding out for a larger settlement.
After settlement is reached or the case is adjudicated and the award is paid to the lawyer’s trust fund, the capital invested by Pravati, as well as the agreed-upon interest, is paid out of the settlement funds.