ClaimScore

Company Overview

ClaimScore is an independent software company that operates as an AI & Machine Learning claim validation solution for class action settlements. Founded with over 40 years of class action case work experience, ClaimScore aims to resolve the growing problem of claim fraud in class action settlements. The company is based in the United States and serves the legal technology industry, specifically focusing on class action administration.

Products Overview

ClaimScore’s primary product is a proprietary AI and machine learning-based claim management and anti-fraud software solution for class action settlements. Their offerings include:

1. Real-Time Claim Validation: An API integration that allows administrators to review claims in real-time using ClaimScore’s AI technology. It provides instant results through an interactive dashboard.

2. Retroactive Claim Review: A solution for reviewing claims at any point during a case, providing results within minutes on an interactive dashboard.

3. Mid-Case Consultation: An expert opinion service on claim validation for existing cases, including a PDF Insight Report.

The software uses a 65+ point expert-system artificial intelligence algorithm combined with a neural-network machine learning system. Each claim is reviewed individually and given a ClaimScore, with claims scoring below 700 recommended for rejection. The system can process thousands of claims per second and millions per hour.

Founding Team

While specific names are not provided, the founding team is described as having over 40 years of experience in class action case work. They have worked on both sides of the courthouse and led Class Action Administration firms. The founders also have backgrounds in entrepreneurship and technology leadership.

Problem and Market Fit

ClaimScore addresses the growing problem of fraudulent claims in class action settlements. The company cites a significant increase in the volume of claims submitted in recent years, driven by social media influencers, class action case consolidation sites, and websites promoting class action claims as a way to earn “free money.” This surge in claims, combined with technological advances, has led to an increase in fraudulent submissions that threaten the integrity of the class action system.

Business Model

ClaimScore operates as a Software-as-a-Service (SaaS) provider, offering its AI-powered claim validation solution to class action administrators, law firms, and other stakeholders in class action settlements. The company likely charges fees based on usage of its software or on a per-case basis.

Funding and Runway

In April 2024, ClaimScore raised $3.15 million in an oversubscribed seed funding round led by ROC Venture Group. This funding is intended to support the company’s growth and further development of its anti-fraud technology.

Competitive Landscape

While specific competitors are not mentioned, ClaimScore positions itself as the “only independent software solution dedicated to resolving the ever expanding claim fraud problem in Class Action Settlements.” The company likely competes with traditional manual review processes and potentially other legal tech companies developing solutions for class action administration.

Customers

ClaimScore’s recent partners include: - Dunn Law Firm - Bursor & Fisher - AICS (Angeion Group) - Milstein Jackson Fairchild & Wade

The company has also been involved in several high-profile class action cases, including: - Jimenez v. Artsana USA, Inc. - Lipsky, et al. v. American Behavioral Research Institute, LLC - Wyland v. Woopla, Inc. - Rosenfeld et al. v. AC2T, Inc. - O’Malley, et al. v. FloSports, Inc. - Whiting v. Yellow Social Interactive, Ltd. - Ignacio Perez, v. Rash Curtis Associates - Messick v. Applica

Relevant News

• July 2024: Featured in a Legaltech News article discussing the opportunity for legal tech companies in combating class action settlement fraud.
• May 2024: Mentioned in a Reuters article about the rise of fraudulent claims in class action settlements.
• April 2024: Announced $3.15 million seed funding round led by ROC Venture Group.
• April 2024: Featured in articles by Law360, Law.com, and Axios discussing the funding round and the company’s mission.
• March 2024: Co-founder Bryan Heller authored an article for Law.com about AI-fueled fraud in the Altria/Juul class action.
• October 2023: Launched its “plug and play” API for class action administrators.

ClaimScore has positioned itself as a key player in addressing the growing challenge of fraudulent claims in class action settlements, leveraging advanced AI and machine learning technology to provide efficient and accurate claim validation services.