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Some market participants suggest there is up to £4bn of litigation exposure for RBS.
Citigroup has set aside $6.7 billion in all to cover its litigation exposure.
The stock, which was trading at about $43 a share in March, has been weighed down by concerns about litigation exposure and interest rate uncertainties.
The potential litigation exposure is massive.
Most commonly cited: Continual pressure to meet short-term analyst projections, time spent on investor relations, significant direct and indirect compliance costs, loss of confidentiality and litigation exposure.
The price represents a 66% premium for MP3.com shares, which is not bad for a company that faces at least the threat of bankruptcy due to its litigation exposure.
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Talk to the company's outside legal counsel on pending litigation and compliance exposure.
The venture capitalist says all litigation and legal exposure has been settled and eliminated, setting up the company to focus on its future opportunities.
"It's not just for litigation but social media exposure," Mr. McCalmon said.
Some investors also cheered the development, as it removed the fund's exposure to litigation against two former employees.
"I think something that hasn't been explored much is the extent to which the financial services industry has exposure to litigation risk in securitizations," Professor Engel said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com