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Anyone else concerned about Ruiz's alleged net worth?

Katzenboyer said:
Ruiz does not own a patent to software/any claims identifying tool. The valuation of the company is based entirely on the 20% cut he gets for identifying claims.

At that math, Ruiz is effectively stating that he is in possession of $175 billion in claims against insurers that he can farm out to other attorneys over the next five years. For comparison's sake, that type of revenue would put him on par with the revenues grossed by Exxon and AT&T last year. That's just not realistic, especially when Ruiz has admitted that his company is currently not generating any revenue.

Honestly, though, my problem isn't really with Ruiz. It's with Lionheart Capital. Those guys leave trouble in their wake (just look at the lawsuits filed against them, they're public record). Just bothers me is all.
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With all due respect you don’t know what you are talking about.

This is in their disclosures:


MSP’s proprietary multi-level data-analytics platform currently deploys more than 1,400 algorithms and other leading technology to aggregate and analyze data from more than 600 data funnels to identify and pursue recoverable claims. The funnels are applied to data from more than 100 leading healthcare providers and insurance company clients, legal filings from across the country, including private lien agreements, and numerous third-party databases help enrich this data.



They use data analytics to filter through cases to determine opportunities to collect through errors. The business is based on having the process. They make money farming out the cases they identify.

The value premium is due to these guys having the data analytics to sort through tons of cases and then identify errors that they then take on and collect. Outside of the data analytics, their business is basically a high end collections business except the debtors don’t know they actually owe because of prior errors. All the value he brings is in the ability to screen transactions.
 
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colperm said:
You make some good points. I just have one question, what good does it do our program to post this?


Can we at least wait until after NSD to pick holes in our largest booster?
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Is he the largest booster? No troll honest question. I thought Soffer was.
 
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Who gives a ****? These are personal marketing deals he is making with college athletes which is allowed by state law. It doesn’t matter for us/the school where that money comes from as they have zero ability to disallow it, other than ensuring the deal is legal and is in compliance. Whether that money came from the drug trade, selling used cars at insane markups, or being a lawyer, etc is pretty irrelevant. What matters is he has money and he is spending it on Miami players’ Name image and likeness.
 
Gables Cane said:
He is too much of a "look at me" booster. I much prefer the "let me work behind the scenes" kinda booster. You know...the kind that belong to the SEC top dogs and have quietly paid players for years without getting in trouble.

Times have indeed changed but this story might not end well. In the meantime, enjoy the ride 'cuz it will get bumpy.
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Lol that’s not Miami. You’ll find that in Athens or Tuscaloosa
 
561caneforever said:
This sounds like the dot-com 2.0 bubble. Crazy revenue projections and a ton of debt. What could go wrong?
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It's really not, there's risk like with anything. It's a way to bring a company to market through a SPAC (special purpose acquisition company) merger to be publicly traded instead of going the route of a traditional IPO. It gives retail investors like you or I a chance to buy shares at ground floor pricing unlike IPOs where institutions get first opportunity and you pay an elevated price after the IPO goes public. SPACs were the craze in 2020 and early 2021, they have lost steam now. Probably the most famous SPAC merger and one everybody here knows is DraftKings, these guys compete directly with Barstool Sports. Another famous SPAC is SoFi, some are good most aren't. DraftKings started out as a small player and have grown into a market leader along with FanDuel. I really don't know much about the Lionheart/MSP Recovery merger.
 
As long as he isn’t breaking any laws that will bring us down with him, I don’t care. Whatever his net worth is, I don’t care. Just keep it clean in the eyes of compliance and keep forking it over.
 
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CaneintheWilderness said:
I think Soffer is the largest booster in terms of money actually given to the program. Ruiz is the biggest booster if you count money that he doesn't yet have but that CIS posters have nevertheless already donated in their imaginations.
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That was my feeling. We literally boasting about cashing IOUs. I retype this reply 6 times trying not to be too negative I will leave it at that.

I very well could be wrong about them and I hope I am. Truly.
 
We the Boss said:
With all due respect you don’t know what you are talking about.

This is in their disclosures:


MSP’s proprietary multi-level data-analytics platform currently deploys more than 1,400 algorithms and other leading technology to aggregate and analyze data from more than 600 data funnels to identify and pursue recoverable claims. The funnels are applied to data from more than 100 leading healthcare providers and insurance company clients, legal filings from across the country, including private lien agreements, and numerous third-party databases help enrich this data.



They use data analytics to filter through cases to determine opportunities to collect through errors. The business is based on having the process. They make money farming out the cases they identify.

The value premium is due to these guys having the data analytics to sort through tons of cases and then identify errors that they then take on and collect. Outside of the data analytics, their business is basically a high end collections business except the debtors don’t know they actually owe because of prior errors. All the value he brings is in the ability to screen transactions.
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Again, and I repeat, the PRODUCT IS NOT THE SOFTWARE/ALGORITHIMS. The company makes money on its 20% cut of identified claims that ultimately recover, i.e. the firm being taken public generates its revenues not from the sale of the software/tools, but on the money the firm makes farming the cases out.

Why is this so hard to understand? The fact that Ruiz claims he possesses software that's really, really good at identifying potential claims could absolutely be true. But it means nothing if 1) he isn't selling/licensing the software (and why would he? It would allow everyone else to do the same thing he's claiming is proprietary), and 2) the recovery of the claims identified recover at something less than 100%.

Put another way: Ruiz is not Netflix. He is not selling access to his software/tools that are allegedly used to identify claims on a subscription-level model; his revenue will not derive from any use, sale, or license of that software. In order for the company to make money, the lawyers he farms the claims out to need to make money.

That could happen, but at a level that results in $35-$50 billion in revenue in five years? That's not realistic (especially when considering Netflix made only $25 billion in revenue in 2020).
 
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Katzenboyer said:
Again, and I repeat, the PRODUCT IS NOT THE SOFTWARE/ALGORITHIMS. The company makes money on its 20% cut of identified claims that ultimately recover, i.e. the firm being taken public generates its revenues not from the sale of the software/tools, but on the money the firm makes farming the cases out.

Why is this so hard to understand? The fact that Ruiz claims he possesses software that's really, really good at identifying potential claims could absolutely be true. But it means nothing if 1) he isn't selling/licensing the software (and why would he? It would allow everyone else to do the same thing he's claiming is proprietary), and 2) the recovery of the claims identified recover at something less than 100%.

Put another way: Ruiz is not Netflix. He is not selling access to his software/tools that are allegedly used to identify claims on a subscription-level model; his revenue will not derive from any use, sale, or license of that software. In order for the company to make money, the lawyers he farms the claims out to need to make money.

That could happen, but at a level that results in $35-$50 billion in revenue in five years? That's not realistic (especially when considering Netflix made only $25 billion in revenue in 2020).
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You don't know WTF you are even arguing at this point. Just step away from the computer.
 
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If I was Miami :
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Katzenboyer said:
Right. If the SPAC deal closes, it's really money. But it hasn't yet, and the valuation seems entirely unrealistic for that to actually happen.

Believe me, I want it to. I respect Ruiz and the niche he's found in the legal market. But it's just a niche; he's not sitting on some kind of technical revolution that will re-invent the practice of law, which is my main concern with the valuation numbers.

If those numbers were truly real, and not just funny money, why hasn't Kirkland & Ellis (a firm that actually does generate billions in revenue) go public via a SPAC? Why not Akerman? Holland & Knight? Debevoise & Plimpton?

It feels too good to be true.
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Because Ruiz’s company is pre-revenue so going public via a spac is his only option to make forward looking revenue projections. You can’t do that via the traditional IPO route.

Chances are the spac deal will go through but at a lower valuation. I expect a ton of redemptions. This will probably be a squeeze play due to the low float.
 
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