MAKING OPTIMAL DECISIONS
FOR LITIGATION AND SETTLEMENT
“Our board was divided about whether we should settle or not. Based on KR’s analysis, we aligned management and board around a clear direction forward” –
One biotech company was suing another for patent infringement. Senior management needed to present a recommendation to their board on whether to continue the lawsuit or attempt to settle and, if settling, for how much. The board meeting was in three weeks. Working with the company's attorneys, KR created a framework to compare the risk-adjusted values of both going to trial vs. settling. In developing the evaluation, KR explicitly included key considerations, such as the probability of finding of willfulness on the part of the accused infringer, probability of winning at least one of several patent infringement issues, potential of recovering past legal fees, and probability and impact of obtaining an injunction vs. a royalty award. Based on KR's analysis, management presented a clear and compelling argument for continuing with litigation. which the board unanimously approved.