LexShares, a crowdfunding platform that enables individuals to invest in litigation, is now operating.
The platform connects accredited investors with plaintiffs in commercial lawsuits to make an equity investment in a specific case. If the plaintiff prevails, the investor will receive a portion of the proceeds, from a settlement or court judgment, proportionate to the investment. LexShares can be accessed at www.lexshares.com.
“LexShares provides a transparent, economically rational and efficient means for connecting plaintiffs with investors to fund their commercial legal claims,” says Jay Greenberg, Co-Founder and CEO of LexShares. “In doing so, we hope to provide plaintiffs with equal access to justice and investors with access to a new asset class that is not correlated with broader capital markets.”
Greenberg, formerly part of Deutsche Bank’s technology investment banking group, founded LexShares with attorney Max Volsky, an alternative markets engineer and pioneer in litigation finance and the author of Investing in Justice. Volsky has overseen more than 10,000 investments in legal claims since 1999 and is the founder of litigation finance fund LexStone Capital.
“Financing is key to the success of a lawsuit. Large companies often have an unfair advantage because they have virtually unlimited access to legal resources that individuals or smaller companies do not,” explains Max Volsky, Co-Founder and Chief Investment Officer at LexShares. “Our mission is to even the playing field.”
