Litigation Portfolio Pricing & Claims Valuation
Objective
Today, the “probable / possible / remote” classification – and the related value estimates – often depends on each attorney’s memory and personal experience, consuming time and creating analyst-to-analyst variance. A superior way to evaluate litigation contingencies is to be data-driven, determining win/loss probabilities for cases consistently and quickly.
Without statistical methods, contingency estimates and the parameters used for settlements or portfolio pricing remain discretionary and hard to compare. Our service turns this into a calibrated probabilistic assessment, powered by the client’s history and modern statistical techniques, aligned with internal policies and accounting references (e.g., Brazilian GAAP CPC 25 / IAS 37).
Analyze your odds in a case - Find the percentage likelihood of loss or success for each claim in a lawsuit
Portfolio-wide valuation of litigation - Calculate the value of heterogeneous groups of litigation assets
Grounds for settlement - Keep historical decision estimates at hand to set negotiation parameters
Our Client
Designed for in-house legal departments, law firms, and investment funds that manage high-volume litigation in banking, labor & employment, telecommunications/consumer, and related areas—organizations that need to standardize risk criteria, provision/contingency estimates, and negotiation parameters across thousands of cases on an ongoing basis.
Solution
We combine the client’s own case history (optionally augmented with comparable datasets from the same practice area) and statistical modeling to estimate the outcome of each claim/allegation:
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Data foundation & normalization: Ingest the client’s repository, deduplicate it, and map it to the Legal Common Data Model (parties, issues, claims, amounts, outcomes).
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Bayesian analysis: Evaluate key variables: court, division/panel, judge (when available), issue, allegation type, and other case metadata.
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Enrichment layer: When available, incorporate evidence (documents, expert reports, testimony) and the defense theory/strategy used (or planned) to increase precision.
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Risk classes & contingencies: Automatically convert probabilities to the client’s internal classes (probable / possible / remote) with configurable thresholds.
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Scenario analysis: Compute the statistical contingency value per claim and per case (scenarios, ranges), ready for provisioning, budgeting, and what-if analysis.
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Transaction value: Generate guide ranges for settlement proposals and pricing of litigation assets, factoring risk, amount in controversy, forum history, and decisional behavior
The result A quantitative, transparent, and reproducible valuation of litigation assets and liabilities, standardizing risk criteria, supporting provisions, and professionalizing negotiations across the portfolio.