RE:RE:RE:The Challenge Facing StansI agree with your premise. I am not a lawyer and again, as usual all speculation. Let’s assume that the legal fees come to $7 mill (put in your own #'s - e.g. TMI’s funder courts costs for a now nearly 7 year PCA case + award settlement, still not concluded, is around $ 7 mill). The funders need an award of just $7 mill if they have a contract that indicates court costs paid before all other distributions. Or, if it is e.g., a straight 25% commission for winning then now they would need a $28 mill award to break even.
Remember, the way in which a funder views profitability from an award is dependent on how they structure the contract (which shareholders are never allowed to see – they rely on being 'informed'- some on this board can speak to these actual numbers more accurately than I can remember). So funder views re., award is different to the plaintiff’s, as the funder comes first in the transaction and is basing their judgment on the numbers that they think apply to the case costs.
Not really a case of do they think that they can win the full or near full amount. No recent PCA case has come close to that level of award fruition. As far as I can find TMI's was approx 7%; usually if awarded range is 15 - 33% of the original claim.
GLTA -
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