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News and Press Releases |
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HEADLINE:
RD Legal Funding Web Site Generates Record $2.5 MM Legal Fee Financing Of California Class Action Law Firm
By: Staff Writer
PR Newswire. September 10, 2003
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EXCERPT: RD Legal Funding, LLC announced today a record $2.5 million dollar legal fee purchase from a California class action law firm that found RDLF on the Internet. The $2.5 million payout was a new record for RDLF and pushes its annualized growth rate over 500%. The Internet, via RDLF's email newsletter and its website at http://www.legalfunding.com/, has become a major revenue generator for the company in the past year. "The dot-com bust has generated significant demand for our cash flow acceleration services, so it is ironic that our biggest deal came from a class action attorney searching the World Wide Web," said Ron Dersovitz, RDLF's President. The decline in the stock market from the exposure of the dot com hype and corporate fraud has resulted in dozens of large class action lawsuits. These large cases mean large expenses for class action firms, but their revenues are flat, because they come from the settlement of cases filed 2-4 years ago when there were fewer and smaller cases. (For more information see The 2003 Class Action Cash Flow Crunch on the RDLF website at http:// www.legalfunding.com/legalfunding/article.cfm?ID=20.) "Lawyers are really hurting because of the time lag between filing a case and receiving their legal fee from the settlement. RDLF's ability to provide funds when a proposed settlement has been reached has helped many successful class action firms," said Mr. Dersovitz. Class action firms are not the only attorneys experiencing cash flow problems in this economy. "Insurance companies are paying personal injury and workers compensation attorneys slower and the worst situation is the delay in processing tens of thousands of Fen-Phen payments. We expect the number of fees purchased to continue to increase," said Mr. Dersovitz, "since legal income lags the economy."
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