We work with numerous mass tort firms and are familiar with the long waits for fees, the expense associated with managing hundreds or thousands of case files, and the limited access to, and high cost of, financing.
Optcapital worked with several firms involved in surgical mesh litigation. They had a substantial number of cases against multiple manufacturers and, a couple of the firms borrowed from a case financing firm. Collecting their fees was a long, drawn-out process. Meanwhile, interest accruing on the case loans was eroding the value of the fees.
Optcapital entered into two transactions with the firm; a deferral program and a loan program.
Optcapital provided the firm with a Line of Credit with an annual interest rate that was substantially less than what they were paying the case financing lender.
The deferral program allowed the firm to invest fees on a pre-tax basis, which increased the amount of investable fees by over 40% (accounting for both state and local taxes that otherwise would have been paid). This significantly increased the value of the fees.
The combined result of pre-tax, tax-deferred investing along with lower cost of borrowing increased the value of the fees significantly.
If you would like to learn more about how you or your firm can utilize Optcapital’s CaR® Trust Program, please email info@optcapital.com and someone from our Law Firm Team will respond.