The Niche Insurance Policy Behind a Software Company’s Big Legal Payout
Litigation attorney Matthew Grosack was interviewed by the Wall Street Journal about Appian, a software company that obtained judgment preservation insurance to secure at least $500 million from a $2 billion judgment against Pegasystems. This insurance protects the award from being reduced or cancelled on appeal and significntly boosts Appian's market capitalization. Mr. Grosack highlighted that the unpredictable nature of the appeals process makes this insurance valuable by reducing the risk of potential reductions of gains from a trial victory.
"The appeals process can be unpredictable, even for the best lawyers, and introduce the possibility that gains from a trial victory could be reduced or lost entirely," he said.
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