Service company applies settlement strategy to lessen legal costs

The Problem

A service company was sued by the creditors of a bankrupt company with which it had an ongoing association. The client company was one of several parties who had various levels of liability and differing interests in settling. Legal costs were running at about $1,000,000 per month.

The Process

Open Options worked with the legal counsel of the service company to model all parties with an interest in settling and the relevant litigious creditors.

The Solution

In order to achieve an early settlement, Open Options advised the client to widely communicate its desire to block a general settlement. As anticipated, this provoked the creditors to seek a low, early settlement out of fear of the costs of litigation. The case was settled at a cost to the client very much lower than originally expected.