RCS - Burford Capital Ltd - Burford Capital's Affirmative Recovery Research

Burford CapitalAnnouncement

08/02/2022 15:10

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RNS Number : 0658B  Burford Capital Limited  08 February 2022

FOR IMMEDIATE RELEASE

 

New research on affirmative recovery programs reveals opportunity for legal
departments to add value

 

Three of five GCs interviewed say their companies neglected to pursue
meritorious recoveries

 

"We don't leave a dime on the table," says one GC

 

 

New York City, February 8, 2022 - Burford Capital, the leading global finance
and asset management firm focused on law, today releases new independent
research demonstrating that companies can unlock value in their legal
departments through more systematic affirmative recovery programs.

 

As revealed by extensive one-on-one interviews with over 50 general counsel,
heads of litigation and other senior legal leaders at major corporations
globally, most companies have affirmative recovery programs to recover money
for the business by pursuing meritorious litigation and arbitration claims
when their companies are harmed. Still, many see room for improvement, with
those with more systematic affirmative recovery programs showing the benefits
of doing so.

 

Christopher Bogart, CEO of Burford Capital, said: "Our latest independent
research is consistent with my own prior experience as a GC. Done right,
affirmative recovery programs can transform in-house legal departments from
cost centers to revenue generators, greatly enhancing the commercial standing
of senior legal leaders in their companies.

 

"GCs benefit from hearing from their peers and from having the right tools and
partners. In that spirit, we hope this new research helps companies and law
firms alike realize the value of affirmative recovery programs in maximizing
corporate value, and that by adding legal finance to the mix, they can greatly
increase certainty around their litigation budget and cash flows."

 

Key findings from the research include:

 

 ·    Affirmative recovery programs are expanding but are still rarely
 robust.
   o  Affirmative recovery programs are increasingly common, with two of three
   GCs, heads of litigation and other senior in-house lawyers interviewed saying
   that their companies have an affirmative recovery program. However, only a few
   legal leaders say their programs are robust.
                                             § Three of five GCs interviewed say their companies neglected to pursue
                                             meritorious recoveries.
                                             § Half of all GCs interviewed would exchange some upside on pending claims in
                                             exchange for removing costs and downside risk of loss.
   o  Senior in-house lawyers recognize that when they do pursue affirmative
   recoveries, new tools to increase certainty and manage costs will lead to
   better results.
                                             § Three of five GCs interviewed say quantitative financial modeling would be
                                             advantageous to affirmative litigation recoveries.

 

 ·    Legal finance has a role to play.
   o  In-house lawyers whose companies use legal finance consistently say their
   companies have robust affirmative recovery programs that meet their needs.
   o  Senior in-house lawyers admit to varying levels of knowledge about legal
   finance, but many are hungry for more information-and many remain unsure about
   how it works.
   o  Reputation and experience top in-house lawyers' priorities when selecting
   legal finance partners.

 

 ·    More systematic affirmative recovery programs benefit organizations,
 teams and leaders.
   o  Interviews with senior in-house lawyers suggest that more effective
   affirmative recovery programs benefit the overall enterprise, elevate legal
   within the organization and earn credit for legal teams for innovation and
   cost and risk management.

 

 

 ·    Key quotes from the report:

   o  "Everything about what I do is about the value that the legal department
   generates for the company, so new creative ways of generating revenue and
   reducing risk is very appealing." (GC, multinational logistics company)

   o  "If you are on the plaintiff's side, you can finance your claims through a
   legal finance company if the business does not want to lay out the expenses,
   which is great. The lawyers need to understand that this option is available."
   (GC, capital market company)

   o  "My peers are speaking about claims as assets, which was not part of the
   conversation five years ago." (Head of litigation, multinational retail
   corporation)

   o  "We don't leave a dime on the table." (GC, capital market company)

   o  "In the last five years, we have probably recovered over $1 billion in
   settlements or other recoveries." (Group GC, privately held construction
   company)

 

 

The 2022 Affirmative Recovery Programs Report
(https://www.burfordcapital.com/2022-affirmative-recovery-programs-report/)
can be downloaded on Burford's website. The research report is based on 1:1
interviews conducted by phone with 52 general counsel, heads of litigation and
other senior in-house lawyers with direct responsibility for their companies'
commercial litigation and arbitration. The interviews were conducted between
October and December of 2021 by Ari Kaplan Advisors.

 

END

 

 

Contact:

David Helfenbein

Vice President, Public Relations

dhelfenbein@burfordcapital.com (mailto:dhelfenbein@burfordcapital.com) , +1
212 235 6824

 

About Burford Capital

Burford Capital is the leading global finance and asset management firm
focused on law. Its businesses include litigation finance
(https://www.burfordcapital.com/) 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 it works with companies and law firms around the
world from its principal offices in New York, London, Chicago, Washington, DC,
Singapore and Sydney.

 

For more information, please visit www.burfordcapital.com
(http://www.burfordcapital.com) .

 

This communication shall not constitute an offer to sell or the solicitation
of an offer to buy any ordinary shares or other securities of Burford.

 

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