MSP Recovery details $12.7 million jury verdict impact

MSP Recovery, Inc. reports that a jury in the Menendez Litigation returned a mixed verdict involving the company and its subsidiary.

Rhea-AI Filing Summary

MSP Recovery, Inc. reports that a jury in the Menendez Litigation returned a mixed verdict involving the company and its subsidiary. The jury rejected all fraud and misrepresentation theories and found in favor of the company and its CEO, John H. Ruiz, on those claims and on the deceptive and unfair practices claim. However, the jury found that subsidiary MSP Recovery, LLC breached an alleged oral contract and awarded the plaintiffs approximately $12.7 million in damages against the subsidiary, which holds all of the company’s assets.

The court has not yet entered a final judgment, and the defendants are seeking post-trial relief, including a directed verdict, motions to set aside the verdict, and a potential appeal, while also planning to pursue recovery of attorneys’ fees for the company and Mr. Ruiz under Florida law. The company states that the verdict has added uncertainty to its financial condition and prospects and may negatively affect its ability to raise capital or continue as a going concern, and it is continuing to evaluate the impact on its business, results of operations, and financial condition.

Positive

• Fraud and deceptive practices claims rejected: The jury found no liability against MSP Recovery, Inc. and CEO John H. Ruiz on all fraud, misrepresentation, and deceptive and unfair practices claims, reducing legal and reputational risk on those allegations.

Negative

• $12.7 million damages against asset-holding subsidiary: The jury found MSP Recovery, LLC liable for breach of an alleged oral contract and awarded approximately $12.7 million, directly affecting the subsidiary that holds all of the company’s assets.
• Heightened going-concern and capital-raising risk: The company states the verdict has created uncertainty about its financial condition and prospects and may negatively impact its ability to raise additional capital or continue as a going concern.

Insights

Litigation and credit risk analyst

Adverse $12.7 million jury award against key subsidiary heightens financial and going-concern risk for MSP Recovery.

The jury in the Menendez Litigation found no liability on all fraud and misrepresentation theories and on the deceptive and unfair practices claim for MSP Recovery, Inc. and its CEO, John H. Ruiz, which removes the immediate threat of those specific allegations. However, the jury found MSP Recovery, LLC, the subsidiary that holds all company assets, liable for breach of an alleged oral contract and awarded the plaintiffs approximately $12.7 million in damages.

No final judgment has been entered, and the defendants are pursuing a directed verdict, post-trial motions to set aside the verdict, and a potential appeal, while the company and Mr. Ruiz intend to seek recovery of their attorneys’ fees under Florida law. The company explicitly notes that it cannot predict the outcome of these efforts and that the verdict has contributed to uncertainty about its financial condition and prospects and may negatively impact its ability to raise additional capital or to continue as a going concern. This language signals elevated litigation and liquidity risk until there is greater clarity from the court process.

8-K Event Classification

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did the jury decide in the Menendez Litigation involving MSPR?

The jury rejected all fraud and misrepresentation theories and found in favor of MSP Recovery, Inc. and John H. Ruiz on those and on the deceptive and unfair practices claim, but found subsidiary MSP Recovery, LLC liable for breach of an alleged oral contract and awarded approximately $12.7 million in damages against the subsidiary.

Does the $12.7 million verdict affect MSP Recovery’s going-concern status?

MSP Recovery states that the jury verdict has contributed to uncertainty regarding its financial condition and prospects and may negatively impact its ability to raise additional capital or to continue as a going concern.

Is the $12.7 million jury award against MSPR final?

No final judgment has been entered. MSP Recovery, LLC has moved for a directed verdict and the defendants intend to pursue post-trial relief, including motions to set aside the verdict and a potential appeal to the state appellate court.

How were MSP Recovery, Inc. and CEO John H. Ruiz treated in the verdict?

The jury completely exonerated MSP Recovery, Inc. and John H. Ruiz on all claims asserted against them, including rejecting every fraud and misrepresentation theory and finding in their favor on the deceptive and unfair practices claim.

Will MSPR seek to recover attorneys’ fees related to the Menendez case?

Because the jury found in favor of the company and John H. Ruiz on the deceptive and unfair practices claim, they have a statutory right under Florida law to pursue recovery of their respective attorneys’ fees, and they state that they fully intend to pursue that right.

How does MSP Recovery describe the impact of the verdict on its business and finances?

The company says the verdict has contributed to uncertainty regarding its financial condition and prospects and may negatively affect its ability to raise capital or continue as a going concern, and it is continuing to evaluate the impact on its business, results of operations, and financial condition.

AI-generated analysis. How Rhea-AI works. Not financial advice.

Understanding 8-K Material Events →

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Accepted by SEC EDGAR 08/26/2025 - 05:15 PM Learn about SEC filing dates

False00018024500001802450mspr:RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassACommonStockAtAnExercisePriceOf28750PerShareMember2025-08-202025-08-200001802450us-gaap:CommonStockMember2025-08-202025-08-2000018024502025-08-202025-08-200001802450mspr:RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassACommonStockAtAnExercisePriceOf00025PerShareMember2025-08-202025-08-20

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 20, 2025

MSP Recovery, Inc.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation)		001-39445 (Commission File Number)		84-4117825 (I.R.S. Employer Identification No.)
3150 SW 38th Avenue Suite 1100 Miami, Florida				33146
(Address of principal executive offices)				(Zip Code)

(305) 614-2222

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A Common stock, $0.0001 par value per share		MSPR		Nasdaq Capital Market
Redeemable warrants, each lot of 625 warrants exercisable for one share of Class A common stock at an exercise price of $7,187.50 per share		MSPRW		Nasdaq Capital Market
Redeemable warrants, each lot of 625 warrants exercisable for one share of Class A common stock at an exercise price of $0.0625 per share		MSPRZ		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01 Other Events.

Jury Verdict Against the Company’s Subsidiary

In the matter of Menendez v. Ruiz, Case No. 2023-001738-CA-01, pending in the Eleventh Judicial Circuit in and for Miami-Dade County, Florida (the “Menendez Litigation”), plaintiffs Norberto Menendez, iNewton, LLC, Synnova Health, Inc., and Health Beats, LLC (collectively, the “Plaintiffs”) sought damages under eight legal theories against John H. Ruiz, individually, MSP Recovery, Inc. (the “Company”), and MSP Recovery, LLC, a subsidiary of the Company (together, the “Defendants”). Following a seven-day trial, on August 20, 2025, a jury returned a verdict finding no liability against the Defendants on all but one of the counts asserted in the Complaint. Specifically, the jury rejected every fraud and misrepresentation theory and completely exonerated the Company and Mr. Ruiz from any and all claims asserted against them. The jury did return a finding of breach of an alleged oral contract, but only as to the Company’s subsidiary, MSP Recovery, LLC, which holds all of the assets for the Company. The jury awarded Plaintiffs approximately $12.7 million in damages against MSP Recovery, LLC on that claim.

The court has not entered a final judgment in the Menendez Litigation. Defendants have asserted, and continue to assert, both procedural and substantive defenses. MSP Recovery, LLC has moved for a directed verdict and intends to vigorously pursue post-trial relief, including motions to set aside the verdict and a potential appeal to the State appellate court based on various legal theories, including that the parties’ integration clause invalidates any alleged oral contract as a matter of law.

Moreover, as the jury found in favor of the Company and Mr. Ruiz on the deceptive and unfair practices claim, the Company and Mr. Ruiz have a statutory right under Florida law to pursue recovery of their respective attorneys’ fees; a right the Company and Mr. Ruiz fully intend to pursue. Neither the Company nor its subsidiary can predict the outcome of the Menendez Litigation or the likelihood of prevailing on the aforementioned requests for relief.

The jury verdict in the Menendez Litigation has contributed to uncertainty regarding the Company’s financial condition and prospects and may negatively impact its ability to raise additional capital or to continue as a going concern. We continue to evaluate the impact of the verdict on our business, results of operations, and financial condition.

Cautionary Note Regarding Forward-Looking Statements

Certain statements made herein are not historical facts but may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended, and the “safe harbor” provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “agree,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook” or the negatives of these terms or variations of them or similar terminology or expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements involve risks, uncertainties and other factors that may cause actual results, performance, or achievements to be materially different from the information expressed or implied by these forward-looking statements. Although the Company believes that it has a reasonable basis for each forward-looking statement contained in this Current Report, the Company cautions that these statements are based on a combination of facts and factors currently known by it and its projections of the future, about which it cannot be certain. Forward-looking statements in this Current Report include, but are not limited to, statements regarding the Company’s expectations concerning the impact to the Company’s financial condition caused by the verdict in the Menendez Litigation; any potential post-trial motions and appeal of the verdict; the Company’s disagreement with the verdict; and the Company’s intention to challenge the judgment. Forward-looking statements are neither historical facts nor assurances of future results, performance, events or circumstances. Instead, these forward-looking statements are based on management’s current beliefs, expectations, and assumptions, and are subject to risks and uncertainties. These risks and uncertainties include any adverse outcomes of any motions or appeals against us, and other risks and uncertainties, including those more fully described in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on April 16, 2015, and subsequent Quarterly Reports on Form 10-Q, and other factors detailed from time to time in the Company’s filings with the SEC. The Company undertakes no obligation to revise or update publicly any forward-looking statements.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits

Exhibit Number		Description
104		Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document).

(di)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

				MSP RECOVERY, INC.
Dated: August 26, 2025
				By:		/s/ John H. Ruiz
				Name:		John H. Ruiz
				Title:		Chief Executive Officer