Frankfurt-based litigation financing company LF Legal Finance SE announces its first litigation financing under the "distressed finance" model: The Legal Finance Group will finance a lawsuit for the reassignment of company shares and, if successful, will acquire a stake in the company.
Last week, Legal Finance announced the launch of a new, innovative financing product: Distressed Finance. The principle: Legal Finance finances a process that is not aimed at a claim for payment, i.e. the payment of money. Instead, Legal Finance participates in the success of the process, for example in the form of company shares or real estate.
The current case is international and complex: it involves the retransfer of shares in a company from a private individual. The company in dispute is valuable and has been 'stolen' from the claimant, including by deception, resulting in a six-figure loss to the claimant.
The defendant is solvent and tangible. Previous attempts to reach a settlement between the parties over a period of several months have been unsuccessful.
The chances of success of the claim have been described by lawyers as good. In particular, Legal Finance sees an opportunity to bring the case to a speedy conclusion through a settlement.
Legal Finance is financing the case in cooperation with its subsidiary Legal Finance International GmbH and will participate in the event of success.