ALFA provided Horizon Investments with a comprehensive legal funding solution tailored to their needs. The funding package included:

1. Capital Advance: ALFA provided an upfront capital advance of $3 million to cover the immediate costs of the litigation, including attorney fees, forensic accounting services, expert witness costs, and other necessary expenses.
2. Non-Recourse Financing: The funding was structured as non-recourse, meaning Horizon would only repay if they won or settled the case favorably. This significantly reduced the financial risk for Horizon.
3. Risk Assessment: ALFA's team conducted a thorough risk assessment of the case, offering Horizon valuable insights into the strengths and potential challenges of their legal strategy.

Use of Funds

The $3 million in funding provided by ALFA was allocated as follows:

1. Legal Fees: $1.5 million was allocated to cover the fees of a top-tier legal team specializing in securities fraud claims.
2. Forensic Accounting: $800,000 was used to hire forensic accountants to uncover and document the fraudulent activities and quantify the financial losses.
3. Expert Witnesses: $500,000 was set aside for expert witnesses to provide testimony on financial practices and industry standards.
4. Discovery and Documentation: $200,000 was allocated for discovery processes, including the collection and analysis of evidence and documentation.

Results

With ALFA's support, Horizon Investments was able to pursue their securities fraud claim without compromising their financial stability or operational efficiency. The key outcomes included:

1. Effective Risk Management: The non-recourse nature of the funding minimized Horizon's financial risk, allowing them to proceed with the case confidently.
2. Improved Cash Flow: The capital advance ensured that Horizon had the necessary funds to cover litigation expenses without diverting resources from their core operations.
3. Favorable Judgment: The case was resolved in Horizon's favor, resulting in a substantial financial recovery that compensated for their losses and covered the costs of the litigation.
4. Enhanced Reputation: By successfully challenging the fraudulent activities, Horizon strengthened their reputation for diligence and integrity in the investment community.