Derived SignalEmerges from analysis

Litigation Risk

Are there material pending legal proceedings?

Seen in CVNA

Assessment Spectrum

MINIMAL

PENDING

MATERIAL

EXISTENTIAL

BestWorst

About Derived Signals

Derived signals emerge from analysis synthesis when company-specific patterns warrant additional categorization beyond the core 11 signals. They capture nuances that the standard framework surfaces through rigorous multi-model debate.

Assessment Labels

Every analysis assigns one of 4 categorical labels to this signal. Labels represent a spectrum from best to worst assessment.

MINIMALBest outcome

No material pending litigation. Standard business disputes only. No credible legal theories threatening the business.

PENDINGPositive outcome

Material litigation exists but outcome is uncertain. Cases have survived initial dismissal motions, indicating credible legal theories being tested.

MATERIALConcerning outcome

Litigation poses significant financial or operational risk. Likely settlements or judgments could materially impact results.

EXISTENTIALWorst outcome

Litigation threatens business viability. Potential outcomes include operational restrictions, criminal liability, or company-ending judgments.

What This Signal Captures

Securities class actionsRegulatory enforcementPatent disputesConsumer protection claims

Emerges From

This derived signal emerges from analysis synthesis within these lenses when company-specific patterns warrant the additional categorization.

Fugazi Filter

Are the reported numbers trustworthy?

How to Interpret

Litigation risk is assessed based on case status and potential impact. Surviving dismissal motions means plaintiffs have alleged facts that, if true, could constitute violations—this doesn't prove wrongdoing but indicates credible legal exposure.

All Concepts Learn about Evidence Levels