How It Works

Driving towards a settlement with Theo is a three step process. The preparation step captures the key numbers unique to each case. The assessment step uses that data to provide risk reports on the spot as the talks are underway. Finally, the conclusion step provides a record of the process that led to a successful settlement. Note that not all cases are successfully settled. Theo provides the risk information that provides a rational basis for settling or not.


Know the Numbers. Theo uses a few key numbers to produce the risk report. For the first step, you will need to provide amounts and probabilities. These numbers are displayed in the Litigation Outcomes diagram. They are the necessary foundation in order to move to Step 2.


Assess the Offers. Once the Litigation Outcomes numbers are collected, you can then obtain a risk report for a settlement offer. Move the slider on the bar to select the offered amount and Theo immediately produces the risk report for that offer based on the numbers in the Litigation Outcomes diagram.

Offer Risk in Rejecting the Offer and Going to Court
$375,000 Downside Upside
Probability 61% 39%
Expected Amount $90,489 $461,523
Loss or Gain -$284,511 $86,523

If and When the Offer is Right, Settle and Move On. If and when a settlement is agreed to, the Final Report includes the risk report for the settlement offer amount as well as a table showing the assessed offers in the order they were evaluated.

Settlement Report

Case: Smith v Jones

Settled at: $375,000

Offer Sequence

Offer Downside Upside
Prob Loss Prob Gain
$50,000 37% -$80,243 63% $339,375
$100,000 37% -$130,243 63% $289,375
$150,000 38% -$172,482 62% $247,240
$225,000 42% -$228,869 58% $186,063
$305,000 51% -$260,961 49% $132,916
$375,000 61% -$284,510 39% $86,522