Burford Capital Research Finds Companies Missing Out on Commercial Class Action Recoveries Due to Opt-Out Reluctance
Burford Capital (NYSE:BUR) has released new research revealing that US companies are significantly underutilizing commercial class action opt-out opportunities. The study, surveying 301 senior in-house lawyers, found that while 54% of companies had potential recoveries exceeding $50 million in the past five years, 62% typically remained in class actions.
The research indicates that 71% of lawyers believe opting out would have increased recoveries by over 25%. Despite 86% prioritizing maximizing recoveries, companies cite litigation costs and outcome uncertainty as main deterrents. Legal financing solutions, which could address these barriers, remain underutilized, with only 39% of companies having used them for opt-out strategies.
Burford Capital (NYSE:BUR) ha pubblicato una nuova ricerca che evidenzia come le aziende statunitensi sfruttino in modo significativo le opportunità di opt-out nelle class action commerciali. Lo studio, che ha coinvolto 301 avvocati senior interni, ha rilevato che, sebbene il 54% delle aziende avesse potenziali recuperi superiori a 50 milioni di dollari negli ultimi cinque anni, il 62% di queste generalmente rimaneva nelle class action.
La ricerca mostra che il 71% degli avvocati ritiene che l'opt-out avrebbe aumentato i recuperi di oltre il 25%. Nonostante l'86% dia priorità alla massimizzazione dei recuperi, le aziende indicano i costi legali e l'incertezza degli esiti come principali ostacoli. Le soluzioni di finanziamento legale, che potrebbero superare queste barriere, sono ancora poco utilizzate, con solo il 39% delle aziende che le ha impiegate per strategie di opt-out.
Burford Capital (NYSE:BUR) ha publicado una nueva investigación que revela que las empresas estadounidenses están subutilizando significativamente las oportunidades de exclusión en demandas colectivas comerciales. El estudio, que encuestó a 301 abogados internos senior, encontró que aunque el 54% de las empresas tenía recuperaciones potenciales superiores a 50 millones de dólares en los últimos cinco años, el 62% generalmente permanecía en las demandas colectivas.
La investigación indica que el 71% de los abogados cree que optar por la exclusión habría aumentado las recuperaciones en más del 25%. A pesar de que el 86% prioriza maximizar las recuperaciones, las empresas citan los costos de litigio y la incertidumbre del resultado como principales obstáculos. Las soluciones de financiamiento legal, que podrían superar estas barreras, siguen siendo poco utilizadas, con solo el 39% de las empresas que las han utilizado para estrategias de exclusión.
Burford Capital (NYSE:BUR)이 미국 기업들이 상업 집단소송 옵트아웃 기회를 충분히 활용하지 못하고 있다는 새로운 연구 결과를 발표했습니다. 301명의 고위 내부 변호사를 대상으로 한 조사에서, 지난 5년간 54%의 기업이 5천만 달러 이상의 잠재적 회수를 기대했지만, 62%는 일반적으로 집단소송에 남아 있는 것으로 나타났습니다.
연구에 따르면 71%의 변호사들이 옵트아웃을 선택했을 경우 회수가 25% 이상 증가했을 것이라고 믿고 있습니다. 86%가 회수 극대화를 우선시함에도 불구하고, 기업들은 소송 비용과 결과 불확실성을 주요 제약 요인으로 꼽았습니다. 이러한 장벽을 해결할 수 있는 법률 금융 솔루션은 저조하게 활용되고 있으며, 옵트아웃 전략에 이를 사용한 기업은 39%에 불과합니다.
Burford Capital (NYSE:BUR) a publié une nouvelle étude révélant que les entreprises américaines sous-utilisent largement les opportunités d'exclusion dans les recours collectifs commerciaux. L'étude, menée auprès de 301 avocats internes seniors, a révélé que bien que 54% des entreprises aient eu des recouvrements potentiels supérieurs à 50 millions de dollars au cours des cinq dernières années, 62% restaient généralement dans les recours collectifs.
La recherche indique que 71% des avocats estiment que l'exclusion aurait permis d'augmenter les recouvrements de plus de 25%. Malgré le fait que 86% accordent la priorité à la maximisation des recouvrements, les entreprises citent les coûts de litige et l'incertitude des résultats comme principaux freins. Les solutions de financement juridique, qui pourraient lever ces obstacles, restent sous-utilisées, seulement 39% des entreprises les ayant utilisées pour des stratégies d'exclusion.
Burford Capital (NYSE:BUR) hat neue Forschungsergebnisse veröffentlicht, die zeigen, dass US-Unternehmen die Möglichkeiten zum Opt-out bei kommerziellen Sammelklagen deutlich unterausnutzen. Die Studie, die 301 leitende interne Juristen befragte, ergab, dass zwar 54% der Unternehmen in den letzten fünf Jahren potenzielle Rückforderungen von über 50 Millionen Dollar hatten, jedoch 62% in der Regel in den Sammelklagen verblieben.
Die Forschung zeigt, dass 71% der Juristen glauben, dass ein Opt-out die Rückforderungen um über 25% hätte erhöhen können. Trotz der Tatsache, dass 86% die Maximierung der Rückforderungen priorisieren, nennen Unternehmen Prozesskosten und Unsicherheit der Ergebnisse als Haupthemmnisse. Rechtliche Finanzierungslösungen, die diese Barrieren überwinden könnten, werden weiterhin wenig genutzt: Nur 39% der Unternehmen haben sie für Opt-out-Strategien eingesetzt.
- 71% of lawyers believe opt-out strategies could increase recoveries by over 25%
- 86% of companies prioritize maximizing recoveries from commercial class actions
- Research provides valuable insights from 301 senior in-house lawyers at major US companies
- Company identifies significant market opportunity in underutilized legal financing solutions
- Only 39% of companies have used legal finance for opt-out strategies, indicating low adoption
- 62% of companies usually stay in class actions despite potential for higher recoveries
- 73% of in-house lawyers cite litigation costs as a barrier to pursuing opt-out strategies
Insights
Burford's research reveals massive untapped market for legal finance in opt-out litigation, validating their business model and growth potential.
This research from Burford Capital highlights a significant value-creation opportunity that many corporations are missing. The data tells a compelling story:
What's particularly revealing is the disconnect between awareness and action. While
The research strategically positions Burford's two core offerings: litigation financing (removing upfront costs cited by
This research effectively serves dual purposes—educating potential clients about an underutilized value-creation strategy while positioning Burford as the solution provider that can remove the primary barriers to adoption. By quantifying both the problem and potential value creation, Burford makes a compelling case for its services while demonstrating substantial growth runway in its core market.
Costs and uncertainty cited as key barriers to opting out—legal finance offers a solution
The independent survey of 301 senior in-house lawyers at US-based companies found that, although
In-house lawyers cite anticipated litigation costs and uncertainty around potential outcomes as the primary reasons their companies choose to remain in the class rather than pursue potentially higher-value individual claims. Legal finance eliminates upfront litigation costs through fees and expenses financing, which
"Corporate legal and finance teams are increasingly focused on value creation, yet many are not leveraging opt-out strategies that could deliver significantly better outcomes," said David Perla, Vice Chair of Burford Capital. "Legal finance eliminates financial barriers to opting out, empowering companies to pursue valuable claims by derisking through fees and expenses financing or by providing immediate liquidity by monetizing a portion of the expected recovery. These options present compelling opportunities for businesses to unlock value and enhance liquidity without deploying internal capital."
Key Findings:
- Opt-outs yield stronger recoveries: Survey results show that in-house lawyers believe opting out significantly increases their recoveries of estimated potential damages, and the vast majority (
71% ) believe opting out would have increased their company's recovery by more than25% . - Cost and uncertainty drive inaction: In-house lawyers cite anticipated litigation costs and uncertainty around outcomes as the main reasons companies forgo opting out, even though
86% say maximizing recoveries from commercial class actions is a business priority.84% indicate they would be more inclined to opt out if they knew it could significantly increase their recovery. - Legal finance is an untapped resource:
73% of in-house lawyers identify litigation costs as a key barrier to opting out, yet only39% have used legal finance to pursue an opt-out strategy—a significant untapped opportunity to mitigate costs and maximize recoveries. Additionally,71% say access to monetization—converting future expected recoveries into immediate capital—would make them more likely to opt out.
The Survey of In-House Counsel on Commercial Opt-Out Claims was conducted by GLG, gathering insights from 301 in-house lawyers at US-based companies with annual revenues exceeding
The research report can be downloaded on Burford's website here.
About Burford Capital
Burford Capital is the leading global finance and asset management firm focused on law. Its businesses include litigation finance and risk management, asset recovery, and a wide range of legal finance and advisory activities. Burford is publicly traded on the New York Stock Exchange (NYSE: BUR) and the London Stock Exchange (LSE: BUR), and works with companies and law firms around the world from its global network of offices.
For more information, please visit www.burfordcapital.com.
This communication shall not constitute an offer to sell, or a solicitation of an offer to buy, any ordinary shares or other securities of Burford Capital or any of its affiliates.
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SOURCE Burford Capital
FAQ
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