NeoMedia Technologies, Inc (NEOM)

[clawmann]

Defendants don't get contingency arangements unless the defendant has a good defense to the plaintiff's claim(s) plus one or more good counteclaims (that the plaintiff actually owes damages to the defendant). Then maybe.

Forget about the "not confident plaintiff" getting a contingency arrangement. It is the lawyer that determines whether the claim is strong or not, and he will not put his time at risk for a case he doesn't think he can win.

Finally, you don't need to be poor. Sometimes well-heeled plaintiffs get contingency arrangements so that they don't have to go out-of-pocket for legal fees. If the attorney prevails, the attorney usually gets between 30%-45%, depending on the strength of the case and the negotiating abilities of the client and the lawyer. The wealthy client may be able to negotiate a cap. E.g, "Attorney gets 35% of the damage award subject to a max of $5 million".

If Neomedia has attorneys pursuing a case on contingency, then it is a pretty good bet that the attorneys believe the case to be both winnable and ultimately lucrative. No other way to interpret it.