MSP Recovery (Nasdaq: MSPRZ) reaches $2.9M confidential settlements

Rhea-AI Filing Summary

MSP Recovery reports that it has entered into confidential settlement agreements in ongoing legal matters totaling $2.9 million in cash. Some of this cash will be shared with counterparties under the company’s existing participation and distribution agreements, so not all proceeds will stay with the company.

One preliminary mediated settlement with a property and casualty insurer includes a commitment to provide historical claims data, help reconcile current and future assigned Medicare claims, and make a cash payment to resolve historical claims. A separate confidential settlement was reached with a pharmaceutical defendant in litigation over alleged overpayments. Management notes that these settlements are still being finalized and warns that definitive agreements may not be executed or deliver the expected working capital or operational benefits.

Insights

Equity & legal-claims analyst

MSP Recovery outlines $2.9M in legal settlements and new data-sharing ties.

MSP Recovery describes confidential legal settlements totaling $2.9 million in cash across multiple counterparties. Portions of these proceeds are earmarked for distribution under existing agreements, so only part of the cash will accrue to the company. The amounts are modest in absolute terms but reinforce that some litigation assets are being monetized.

A key feature of the mediated settlement with a property and casualty insurer is non-cash: the insurer will provide historical data and assist in reconciling current and future assigned Medicare claims, and relevant Medicare claims are to be resolved cooperatively or via binding mediation. That structure may streamline future recoveries with this counterparty, but execution depends on how both sides implement the framework.

The company cautions that parties may not sign definitive settlement agreements on the negotiated terms or at all, and that even completed settlements may not deliver the anticipated working capital or capital-structure benefits. Investors will need future filings to see whether these preliminary settlements close and how much net cash ultimately reaches MSP Recovery.

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, and exhibit attachments filed with this report.

Understanding 8-K Material Events →

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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): September 19, 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 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $50,312.50 per share		MSPRW		Nasdaq Capital Market
Redeemable warrants, each lot of 4,375 warrants exercisable for one share of Class A common stock at an exercise price of $0.4375 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.

MSP Recovery, Inc. (the “Company”) entered into the following confidential settlement agreements, which total a combined $2.9 million in cash. Portions of the settlement proceeds from these preliminary settlements are subject to distribution according to the Company’s existing agreements.

Mediated Settlement with Property & Casualty Insurer

MSP Recovery, Inc. (the “Company”) entered into a confidential mediated settlement with a property and casualty insurer (the “P&C Insurer”) subject to finalizing terms in a settlement agreement. Although the identity of the P&C Insurer and the preliminary terms of settlement are confidential, the settlement terms include:

• An agreement to provide historical data for claimants and also assist the Company in reconciling its relevant current and future assigned Medicare claims;

• An agreement to resolve cooperatively, or through binding mediation, relevant Medicare claims (liens) that the Company owns today and in the future; and

• A cash payment from the P&C Insurer of a confidential amount to settle existing historical claims.

Pharmaceutical Defendant Settlement

The company has obtained a confidential settlement against a drug manufacturer in a pharmaceutical litigation lawsuit alleging overpayments as a result of a prescription drug scheme.

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 preliminary settlement agreements, including the potential availability of working capital therefrom, the Company’s expectations with respect to the use of proceeds, and the anticipated impact of the settlements on the Company’s capital structure and operations. 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, among other things, that the parties may not execute definitive settlement agreements on the negotiated terms or at all; even if the proposed settlements are finalized, the proceeds therefrom may not be delivered or provide the anticipated benefits to the Company; and other risks and uncertainties described in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2025, 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).

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: September 19, 2025
				By:		/s/ Alexandra Plasencia
				Name:		Alexandra Plasencia
				Title:		General Counsel

FAQ

What did MSP Recovery (MSPRZ) disclose in this 8-K filing?

MSP Recovery disclosed that it has entered into confidential settlement agreements in legal matters totaling $2.9 million in cash, with some proceeds subject to distribution under existing agreements.

How much cash do MSP Recoverys new settlements total?

The filing states that the confidential settlement agreements total a combined $2.9 million in cash across the involved parties.

What are the key terms of MSP Recoverys mediated settlement with the property and casualty insurer?

The mediated settlement includes the insurer providing historical data for claimants, assisting MSP Recovery in reconciling current and future assigned Medicare claims, resolving relevant Medicare claims cooperatively or through binding mediation, and making a confidential cash payment to settle existing historical claims.

What did MSP Recovery say about the pharmaceutical litigation settlement?

MSP Recovery reported a confidential settlement with a drug manufacturer in a pharmaceutical litigation matter involving alleged overpayments, without disclosing the identity of the defendant or the settlement amount.

Are MSP Recoverys settlements already finalized and guaranteed?

No. The company notes that the mediated settlement with the property and casualty insurer is subject to finalizing terms in a settlement agreement, and warns that parties may not execute definitive agreements on the negotiated terms or at all.

How might these settlements affect MSP Recoverys capital and operations?

The company states that the settlements could impact working capital, capital structure, and operations, but also cautions that proceeds may not be delivered or provide the anticipated benefits.