We’re thrilled to share UniCourt CEO, Josh Blandi’s new article published in Artificial Lawyer. Josh’s article, Leveraging Court Data for Wealth Management, discusses how real-time court data can be applied to investment strategies and why the source of your data matters, as well as being able to download that data in bulk through APIs. Josh also details common scenarios where having real-time access to court data could make a difference for investment decision-making, such as knowing when lawsuits (class actions, product liability, criminal charges, etc.) are filed against certain companies an investment firm has a stake in and when certain milestones are reached in litigation.
Here below is an excerpt from the introduction of Josh’s article:
If data is the fuel for innovation in finance, then court data is the rocket fuel for investment firms seeking a competitive advantage in the market.
With access to real-time data from countless courts across the country, investment firms can make key decisions before the rest of the market becomes aware of such litigation or its outcomes.
In this article, we will provide a high-level overview of how to leverage court data for investment decisions. Specifically, we will discuss the importance of using data that is normalized (structured and entity-identified) using artificial intelligence, detail how the use of APIs can provide opportunities to obtain actionable intelligence in real-time, and consider how court data can identify common scenarios affecting company valuations.
Leveraging Court Data on the Trading Floor
Applying court data to investment strategies is not just a theoretical concept: In fact, it is something that investment firms are already doing to gain intelligence in advance of critical inflection points impacting the market price of companies.
Notably, traders are tasked with constantly staying ahead of the market so they can make decisions expeditiously. One key factor to consider in valuing major corporations is high-profile litigation. For instance, in a recent case, the Supreme Court ruled against Apple in a 5-4 opinion, allowing a class of aggrieved iPhone users to pursue an antitrust lawsuit against the tech giant for up charging common applications in its App Store. The negative press from the ruling contributed to a 5.8% loss in Apple’s stock price worth tens of billions of dollars.
On the flip side, in 2012, Apple won a patent infringement suit against Samsung, and its stock price immediately shot up, solidifying its status in the market. While litigation involving a company does not guarantee fluctuation in stock values (this largely depends on other variables, like the company’s overall financial health and other market factors), it nonetheless provides valuable intelligence for firms seeking to stay ahead of the curve.
You can read the full article here on Artificial Lawyer.