SettlementAnalytics Launches New Online Litigation Analytics Platform

Share Article

Online platform delivers enterprise-class legal economic analytics based on an advanced game theoretic model of conflict. Groundbreaking software application offers a new approach to litigation analysis, legal decision-making and settlement optimization.

Before trial the value of a legal claim is a combination of trial and settlement

Legal Claim Value Components - Defendant

Advanced model-based analytics platform reveals the 'economic DNA' of legal disputes.

SettlementAnalytics™ is today announcing the launch of OptiSettle™, the world’s first fully-automated legal economic analytics platform – a new model-based approach to litigation analysis.

Based on game theoretic models of legal conflict and a bilateral analytic framework, OptiSettle enables litigants to calculate more realistic claim valuations, compute settlement probabilities, quantify implied trial risks and optimize settlement strategy. OptiSettle works to graphically reveal the “economic DNA” of any legal dispute.

Analytic Innovation

The OptiSettle platform empowers litigants and counsel to take an important incremental step in the analysis of their legal claims, picking up where conventional litigation analysis leaves off – with trial expectations.

While trial expectations are an important first step, alone they can distort the economic picture of a lawsuit by neglecting the potential for settlement and by failing to recognize the contingent nature of trial risk.

OptiSettle takes the next step. Using trial expectations as an input and applying a bilateral model of legal conflict, OptiSettle explicitly computes a theoretical probability of settlement and looks at legal claims as the combination of their trial and settlement value components.

“Before adjudication, a lawsuit is both a potential trial cash flow and a potential settlement cash flow. OptiSettle helps litigants to maximize their combination. This is an important refinement of the economic objective and it can lead to better decision-making,” said Robert Parnell, Founder and CEO of SettlementAnalytics.

Analytics Dashboard

OptiSettle’s main analytic module presents a generalized model of legal conflict. Accepting over 50 different user inputs, OptiSettle is able to encode and analyze any type of lawsuit or disputed insurance claim with point and click simplicity.

In the main dashboard, OptiSettle delivers a rich array of model-based litigation analytics. Users can graphically dissect and visualize any dispute with 32 different hover-over charts and 40 quantitative metrics.

With OptiSettle's unique perspective, litigants and counsel gain quantitative insights that were previously unavailable, including:

  • Pricing legal claims from an investment management perspective
  • Quantifying the risk of settlement offer rejection
  • Reverse engineering the information implied in settlement decisions

Litigation Simulator

OptiSettle also delivers innovative risk measurement tools with its LitigationSimulator™. This module utilizes Monte Carlo simulation to statistically interrogate its game theoretic models. Using LitigationSimulator, plaintiffs and defendants can bench-test their settlement decisions before going into live-fire negotiations.

As output, LitigationSimulator generates animated wealth dispersion charts, summary statistics, PDF reports and spreadsheet data downloads. The option to create dual simulations side-by-side allows users to visually compare the risk-return profile of alternative settlement offers and adopt settlement policies that better match their risk tolerance.

“This is the first time that simulation and game theory have been combined to explore the financial variance of legal claims. We believe this is an important development in legal economic risk measurement,” said Parnell.

Access and Functionality

Using a Software-as-a-Service (SaaS) delivery model, OptiSettle is made available through secure online accounts to corporate and institutional litigants, outside legal counsel and mediators worldwide. Users can create, save and edit an unlimited number of case files and track their portfolio of claims over time. Each case file can also store multiple analyses so users can compare a range of “what-if” scenarios at the click of a button.

The OptiSettle platform is designed to work across all major legal jurisdictions, permitting a choice of different cost shifting rules and user-specified indemnification rates. The models also anticipate a range of different cost structures including hourly, contingent and hybrid legal fees.

The OptiSettle platform is available with four account service levels: Basic, Professional, Institutional and Enterprise. Until October 31, 2015 all new clients can take advantage of the Enterprise level functionality. Register at SettlementAnalytics.com to inquire about an OptiSettle account.

Broader Applications

OptiSettle’s more complete description of legal claim valuation and dispute risk broadens its potential application. In addition to its obvious role in legal decision-making and mediation, OptiSettle can provide valuable insights into monitoring of corporate legal economic risk, M&A due diligence of target legal exposures and audit's evaluation of claim materiality.

About SettlementAnalytics

SettlementAnalytics is an economic research, consulting and software development firm focused on applied legal economics and contingent claims analysis. The firm is dedicated to advancing the application of scientific and quantitative methods to all aspects of litigation and claim settlement. SettlementAnalytics is the litigation research and advisory division of Macro Research Associates Limited, an economics consulting company. More information can be found at SettlementAnalytics.com.

SettlementAnalytics – The Science of Litigation™

For more information please contact:

Robert J. Parnell, CFA
Founder and CEO
Tel: +852 3589 3377
Email: info(at)settlementanalytics(dot)com
settlementanalytics.com

SettlementAnalytics
Macro Research Associates Limited
1301 Bank of America Tower
12 Harcourt Road, Suite 1479
Central, Hong Kong

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Robert Parnell, CFA
@LitigationQuant
since: 07/2014
Follow >
Visit website