Litigation, even for companies with large pocketbooks, is expensive. According to Statista, large companies in the U.S. spent $22.8 billion in 2020 alone. Of course, not all that money went to winning lawsuits, either, meaning even larger losses for companies that settle or don’t win cases. For some companies, it makes more financial sense to settle than press on and accrue addition legal fees as cases drag on over months or even years. However, making those calls on if and when to settle isn’t easy.
Ex Parte, a data-driven legal decision making company that just raised $7.5 million, helps companies make money-saving decisions by predicting the outcomes of litigation. The company’s SaaS platform uses artificial intelligence and machine learning to recommend actions companies can take to optimize their odds of winning cases.
With an 85 percent accuracy rate, Ex Parte says its patented “prediction engine” generates data-driven recommendations including whether to litigate or settle, optimal attorney and law firms, which claims to assert, and where to file or defend lawsuits. Ex Parte founder and CEO Jonathan F. Klein explains his company’s product as the “Moneyball” of litigation; using computer-generated analysis to win legal battles rather than Major League Baseball games.
“There are many technical and conceptual challenges associated with building a robust model of a lawsuit,” Klein said in a statement. “Legal data is by its nature disparate, unstructured, and semantic. We have solved these problems by combining a highly specialized understanding of the legal field with advanced expertise in artificial intelligence, machine learning and natural language processing.”
The funding, which was led by R8 Capital, will be used to expand Ex Parte’s engineering team and invest in new sales and marketing initiatives to scale new customer growth. Currently, the company is hiring a software engineer and machine learning engineer with more positions expected to open up soon.