1 Feb 2010 07:00
1 February 2010
Juridica Investments Limited
('Juridica' or the 'Company')
Trading update
Juridica Investments Limited, the leading provider of strategic capital to both businesses and legal markets for corporate claims, issues the following update on the Company's trading to 1 February 2010.
Highlights
§ The Company is pleased to announce the first full completion of a patent infringement case in which the Company has invested. The case generated $2.4 million on an investment of $1.4 million.
§ A second settlement of $500,000 has been received from an internet-related patent dispute, with further positive results expected to be generated.
§ So far 19 investments have been made in 27 cases - six have generated cash returns for the Company; of which four have completed with the remainder awaiting resolution with additional defendants.
§ $8 million committed to three new investments since 2 November 2009.
§ Relationships with law firms and corporations continue to develop strongly, cementing the Company's market leading position.
§ Commitment by the Company's investment adviser, Juridica Capital Management Limited, to focus on opportunities in the UK market over the coming 18 months.
§ Juridica published its public policy statement, laying out the terms on which it intends to conduct its business.
Commenting on the Company's recent trading Lord Brennan, Chairman, said:
"Juridica Capital Management Limited, the Company's appointed investment manager, has continued to see positive developments in the market for corporate claims finance. Demand for our offering remains very strong and we continue to enjoy excellent relationships with top tier US and UK law firms and the general counsels of major corporations. We believe this is a strong indicator of our ability to aid the business community's efforts to reduce risk from the litigation process."
Recent Results
Juridica is pleased to announce the first full completion of a patent infringement case in which the Company has invested. Case 6308-F settled in December 2009 for $4.0 million of which $2.4 million was paid to Juridica under the terms of its investment agreement. The Company had invested approximately $1.4 million in this investment in January 2009. The matter was resolved by a negotiated settlement that resulted in a sale of the patent to a major technology company prior to the filing of any litigation.
In addition, Juridica received cash proceeds of $500,000 from a second settlement in Case 0708-B, a case with multiple defendants involving an internet-related patent. This is the second settlement in this case since the Company's investment. More information is provided about Case 0708-B in the Portfolio Update below.
Track Record
Juridica has now made a total of 19 investments in 27 cases since inception of the business on 21 December 2007. Six investments have resulted in cash proceeds to the Company, of which four have completed and are closed and two have resulted in settlements with one or more but not all defendants. The investment in Case 0608-S has been written down to zero, as previously reported, but the Company is investigating other possible avenues for recovery of its investment.
New Investments
The Company is also pleased to report that since its last trading update on 2 November 2009, Juridica has made three additional investments below:
§ On 23 December 2009 the Company made a $1.0 million lump-sum investment in Case 5009-S, which involves breach of contract and misappropriation of trade secrets in state court. Under the terms of the Company's agreement with the plaintiff, the Company is entitled to a return of its initial investment plus a capital gain payment calculated with regard to the time elapsed from the date of investment to the date of final judgment or settlement. Depending on timing, the capital gain payment ranges from $1.5 million to $3.5 million. Factual discovery in the case is almost completed and expert discovery is set to begin.
§ On 29 December 2009 the Company made a $2.0 million lump sum investment in Case 6509-A, which involves a significant judgment obtained in an action for breach of contract, fraud and related claims in a US federal court. The case is proceeding to an appeal. The defendant has posted a security bond for the appeal. Under the terms of the Company's agreement with the plaintiff, Juridica is entitled to a return of its initial investment plus a capital gain payment calculated with regard to the time elapsed from the date of investment to the date of final resolution. Depending on timing, the capital gain payment ranges from $2 million to $5.5 million. On 30 December 2009, post-trial motions in the case were decided favorably for the plaintiff.
§ On 28 January 2010, the Company invested $3.5 million in Case 6409-V. This is the Company's first acquisition of an interest in patent assets directly from a Fortune 50 company. The patents cover video compression technology and the claimholder expects a complaint to be filed in Q1 2010 against five or more defendants.
With these three new investments in the portfolio, Juridica has expanded its relationships to include two additional Am Law 100 firms and another Am Law 200 firm. In each investment, the Company is pleased to be supporting a client that is represented by an experienced trial lawyer who has established a record of success in the courtroom.
Portfolio Update
Juridica presently has a total of 15 investments involving 23 cases. As at 1 February 2010, the portfolio comprised the investments in the table below:
Portfolio diversification as at 1 February 2010
| Type of claim or litigation | Cases | Total Commitment | Investments |
| Antitrust (monopolization) | 2 | $79.0m | 2 |
| Antitrust (price-fixing) | 3 | ||
| Statutory claims | 1 | ||
| Patents | 12 | $36.6m | 9 |
| Property damage and insurance subrogation | 2 | $0.5m | 1 |
| Shareholder disputes | 1 | $2.2m | 1 |
| Contract claims | 2 | $3.0m | 2 |
| Total | 23 | $121.3m | 15 |
The portfolio has the following features:
·; Certain investments include ancillary rights to finance future cases
·; Number of subject matters: 7
·; Number of jurisdictions: 11
·; Number of plaintiff law firms: 13
·; Average exposure per case: $5.25 million
Key Schedule Dates in Invested Cases
| Period | Investment | Event |
| No scheduled dates | 7608-A | Recently filed |
| No scheduled dates | 0409-C | Recently filed |
| No scheduled dates | 7508-O | Recently filed |
| No scheduled dates | 2709-E | Recently filed |
| No scheduled dates | 1608-T | Administrative tribunal is determining rights to settlement proceeds under a global settlement agreement involving multiple claims |
| Q1 2010 | 0408-W | Trial scheduled |
| Q1 2010 | 0808-C(1) | Hearing on summary judgment scheduled and final pre-trial conference scheduled |
| Q1 2010 | 1008-A | Case management order under consideration by the court |
| Q1 2010 | 5608-N | Hearing on summary judgment motions scheduled |
| Q1 2010 | 0708-B(3) | Case management conference scheduled |
| Q1 2010 | 5009-S | Expert discovery expected to begin |
| Q1 2010 | 5208-E | Case management conference scheduled |
| Q1 2010 | 0708-B(2) | Answers to complaint expected |
| Q1 2010 | 1208-A | Decisions on pending post-trial motions expected |
| Q1 2010 | 8008-L | Motions to dismiss and start of discovery expected |
| Q1 2011 | 0708-B(1) | Initial pre-trial conference scheduled |
| Q1 2011 | 5308-U | Hearing on summary judgment motions scheduled |
| Q1 2011 | 0808-C(2) | Trial scheduled |
| Q4 2011 | 5308-U | Trial scheduled |
| Q4 2011 | 0108-S | Trial scheduled |
In addition to the events described above, cases 0708-B, 8008-L, 5308-U, 7608-A and 5208-E are multi-defendant cases, which are expected to have a laddered settlement profile.
The average age of the cases in the portfolio is 2.61 years (measured from the date of first filing of any litigation) and the average age of the Company's investment is 0.91 years (measured from the date of investment). The chart below provides this information for each individual case.
| Matter Number | Age of Case (yrs) | Age of Investment (yrs) |
| 0108-S | 1.80 | 1.84 |
| 0408-W | 1.64 | 1.76 |
| 0708-B (3 matters) | 1.23 | 1.55 |
| 0808-C (2 matters) | 9.54 | 1.42 |
| 1608-T | 9.48 | 1.48 |
| 7608-A | 0.46 | 0.90 |
| 7508-O | 0.30 | 0.58 |
| 0209-S | 1.09 | 0.44 |
| 0409-C | 0.29 | 0.33 |
| 2709-E | 0.18 | 0.45 |
| 5009-S | 5.59 | 0.08 |
| 6509-A | 0.45 | 0.10 |
| 6409-V | 0.01 | 0.01 |
| 1008-A | 5.57 | 1.21 |
| 5608-N | 5.21 | 1.21 |
| 1208-A | 3.31 | 1.21 |
| 5208-E | 1.93 | 1.21 |
| 5308-U | 1.28 | 1.21 |
| 8008-L | 0.27 | 0.50 |
| Average | 2.61 | 0.92 |
Developments in Invested Cases
As the cases in the portfolio age, the Company has seen increasing activity across the investments and in this section reports on recent developments and the status of each case.
Antitrust Cases
Juridica presently has exposure to five antitrust (competition) cases as a result of the loan facility to FSS. Developments in these cases are described in this section.
Case 1208-A successfully concluded a jury trial on certain issues in Q3 2009. Damages have not yet been assessed. The defendant filed post-trial motions to overturn the jury verdict and the parties are waiting for a ruling by the court on these motions. If the motions are denied, the plaintiff's counsel expects that an appeal may be taken on the issues that have been resolved at the trial court level. An appeal is expected to last from four to eighteen months from the date of a ruling by the trial court on the pending post-trial motions. If the trial results are upheld on appeal or the appeal is deemed to be premature, the case is expected to return to the trial court for a jury trial on the remaining issues and conclusion at the trial level. The case could be subject to further appeals after the trial of remaining issues if settlement is not concluded at some point in the process described above. The plaintiff is a Fortune 500 company. The trial court must automatically treble any damages awarded by the jury.
Case 5608-N is progressing toward resolution of summary judgment motions that have been filed by both parties. If the motions are resolved in favor of the plaintiff, the case may be set for trial in 2010. The trial court must automatically treble any damages awarded by the jury if the case reaches the trial stage. The Plaintiff in this case is a Fortune 500 company.
Case 5308-U is a price-fixing cartel case brought by several major companies against multiple defendants. The case is presently in discovery, which is scheduled to be completed in Q2 2010. Although trial is presently scheduled for Q4 2011, the case is still in the early stages of development.
Case 5208-E is a price-fixing cartel case against multiple defendants that is pending in the United Kingdom. As previously reported, the UK court recently decided jurisdictional issues in favor of the plaintiffs and one defendant has appealed this ruling. In Q1 2010 the court is expected to decide whether disclosure should commence. As previously reported, one defendant has already settled.
Case 8008-L is the most recent price-fixing cartel case in the portfolio. The case involves antitrust claims brought by several US Fortune 500 companies against a group of large predominantly non-US suppliers. Two complaints have been filed for two separate plaintiffs and discovery is expected to begin in Q1 2010.
Patent Cases
The Company presently has investments in 12 patent cases not including Case 6308-F, which settled as reported above. Developments in these cases are described in this section.
Case 0108-S involves a patent portfolio that covers secure Internet communications. The case is presently in discovery. The Markman hearing is scheduled for Q2 2011 and trial is scheduled for Q4 2011.
Case 0708-B involves an internet-related patent. Two defendants in the case have settled to-date for total cash proceeds of $750,000. This investment now involves three related cases, including one in California and two in Texas. There are more than 20 defendants remaining in the three cases. All three related cases are still in the early stages of development. For ease of tracking, in the tables above, the first case filed in Texas will now be tracked as 0708-B(1), the second Texas case will be tracked as 0708-B(2) and the California case will be tracked as 0708-B(3).
0209-S involves a patent portfolio that covers secure internet communications and e-commerce. This case is still in the early stages of development and has not yet had a scheduling hearing.
0409-C involves a patent that covers the treatment of a rare disease. A complaint was filed in Q4 2009 against one defendant and is still in the early stages of development.
0808-C(1) involves a patent portfolio that covers computer hardware technology. This case is currently scheduled for hearing on summary judgment motions and final pre-trial conference in Q1 2010.
0808-C(2) is a related case to 0808-C(1) and involves the same plaintiffs against different defendants. A motion for change of venue was recently denied. While not currently scheduled, the Markman hearing is expected to occur in Q4 2010.
2709-E involves a patent portfolio that covers video game controllers. The case was filed in Q4 2009 against 3 defendants and is in the early stages of development.
7508-O involves a broad portfolio in the mobile communications market. To date, one case has been filed against multiple defendants. The case is still in the early stages of development.
7608-A involves a patent portfolio in the Personal Navigation Device (PND) market. The case was filed in Q3 2009 against more than 10 defendants and is still early in the stages of development.
6409-V, as referenced above, involves a patent that covers video compression technology. The claimholder expects a complaint to be filed in Q1 2010 against five or more defendants
Other Cases
Juridica has also invested in the following cases in addition to the two new investments in Cases 5009-S and 6509-A described above.
Case 1608-T involves two related cases for property damage claims by way of subrogation. The plaintiffs are several US and UK insurers. The lawsuits have been moved from trial court to an administrative proceeding as a result of a settlement involving multiple cases. The administrative proceeding will determine the plaintiffs' rights to participate in the settlement and the amount thereof.
Case 0408-W involves claims by a group of shareholders against a privately held family company. Trial in this case is scheduled for Q1 2010.
- Ends -
For further information, please contact:
| Juridica Capital Management Limited Richard W. Fields
| +1 (866) 443-1080
|
| Cenkos Securities Nominated Adviser and Broker Nicolas Wells Camilla Hume
| +44 (0) 20 7397 8900 |
| Pelham Bell Pottinger David Rydell Olly Scott | +44 (0) 20 7337 1500 |
About Juridica Investments Limited
Juridica Investments is the leading provider of strategic capital to the business community and the legal markets for corporate claims. It invests directly and indirectly in a diversified portfolio of corporate claims in litigation and arbitration. Juridica is the premier source of value-added and direct financing for large business claims in the United States and one of the leading sources in the United Kingdom.
Our clients are Fortune 1000 companies, FT Global 500 companies, inventors, major universities, and the leading law firms that represent them. Juridica accepts only cases that have already been carefully vetted and undertaken by leading lawyers.
Juridica works to make the legal system work better for business claims. Juridica does not invest in speculative claims or claims that do not have demonstrated economic value and clear merits. Juridica invests only in business claims, and does not invest in class actions, personal injury, product liability, or mass tort claims.
Our goal is to provide business clients with financial choices that reduce risk and assist in maximizing claim value.
Juridica was established on 21 December 2007 as a limited liability, closed-ended investment company registered in Guernsey. It has over US$200 million of assets under management and is listed on AIM, a market operated by the London Stock Exchange (AIM: JIL).
The Company has appointed Juridica Capital Management Limited as its exclusive investment manager to locate, evaluate and manage direct and indirect investments in cases, claims and disputes.
For more information go to http://www.juridicainvestments.com
This announcement contains forward looking statements, which are based on the Board's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables which could cause actual results or trends to differ materially. Each forward looking statement speaks only as of the date of the particular statement. Except as required by the AIM Rules or otherwise by law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.