Pricing Trial Risk
SettlementAnalytics™ has today issued a report which describes the negative impact of trial uncertainty on legal claim valuation. The report, ‘Pricing Trial Risk: The Tangible Cost of Uncertainty in Commercial Litigation’, calculates and visually demonstrates a real cost to uncertainty when examined in a settlement bargaining context.
The report quantifies and illustrates the relationship between trial risk and claim value for a typical corporate defendant and demonstrates that there is a tangible cost to the uncertainty associated with the trial outcome. In extreme cases, uncertainty could exacerbate the economic liability for defendants by as much as 20% of the average trial award. Similar but opposite effects can be seen in the plaintiff case, where claim values are eroded by the effect of trial uncertainty.