Third-party litigation funder Juridica last week posted strong results for 2013, with dividends worth $25.7m (£15.6m) paid out to shareholders and a healthy forecast for the next 18 months.
Audited results showed cash proceeds during the year ending 31 December 2013 were $37.2m from four investments: one final settlement and three partial settlements, which the company said have “further recovery potential”. Other investments have “all continued to progress”, it reported
The company’s outlook was positive, with its portfolio of antitrust and competition, patent and commercial cases in the pipeline all claimed to have the potential to deliver next year and the year after.
Juridica’s chairman, Lord Daniel Brennan QC, said the forecast was based on a “review of presently scheduled trial dates, expected final decisions following trial, and possible settlements in multiple cases that are in an advanced stage of development”.
During 2014 the company believed four cases could generate “significant cash”. Two were part of its antitrust and competition portfolio, one of them with liability won through all appeals and only damages due to be decided by a jury. Claimed damages are over $1bn. A third case, part of its commercial portfolio, has claimed damages of over $500m and the fourth has already provided Juridica with about $69m and has “aspects of its damages claim on appeal”.
Juridica said it expected to make several investments “in medium to large patent portfolios during 2014”. It has relationships with more than 170 law firms to help feed its pipeline of work, including 35 of the top 100 global practices. “We currently have a pipeline of attractive investment opportunities that are proceeding through our due diligence process.”
During 2013, the company made supplemental investments worth just under $3m in four existing cases. Also, it invested $2m for a 7.8% stake in ipCreate, an American intellectual property creation, acquisition and development company.
In its six years to date, the company’s portfolio has generated gross cash proceeds of approximately $125m and paid out dividends of about $64m to shareholders. Ten investments have completed, of which just one generated a cash loss.
Commenting on the results, Lord Brennan said: “Our investments have continued to mature during the year… We have already provided cash returns to shareholders in the form of dividends that equal approximately 62% of our net funding. With the continued maturation of our existing portfolio and with our pipeline of potential investments, we anticipate significant returns from the investment portfolio over the next 12 to 18 months and beyond. The Board therefore looks to the future with confidence.”