The American Lawyer reports that Juridica, a commercial litigation funder, is halting all new investments in cases, in light of several “Courtroom setbacks.” Specifically, the article notes that the denials of cert in two high-profile antitrust case resulted in a $30 million write down.
Investor confidence has slid since June 18, when the fund announced that it was writing down a $30 million expected return on a claim involving alleged overseas price-fixing in the market for liquid crystal displays. The write-down appears to have been prompted by the U.S. Supreme Court’s denial of certiorari in two related appeals, Motorola Mobility v. AU Optronics and Hsiung v. United States.The high court’s decision kept in place an appellate ruling against Motorola that precluded civil Sherman Act claims arising out of foreign conduct by foreign-based companies.
“Had the case survived the challenges it faced, we believed the case would have generated cash proceeds to the company far in excess of its $29.7 million” valuation, Juridica said in its midyear investor report.
The Motorola petition was filed by Tom Goldstein, and the Hsiung petition was filed by Neal Katyal.
It’s fascinating to think an investment was made based on a prediction that the Supreme Court would grant certiorari filed by two of the top advocates in teh game.