REG - Litigation Cap. Mgmt - Class Action Investment and Strategic Review

Litigation Capital ManagementAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250915:nRSO3078Za&default-theme=true

RNS Number : 3078Z  Litigation Capital Management Ltd  15 September 2025

15 September 2025

Litigation Capital Management Limited

("LCM" or the "Company")

Termination of Class Action Investment and Commencement of Strategic Review

 

Termination of Class Action Investment

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager
specialising in dispute financing solutions internationally, announces that it
has terminated its investment in a class action brought on behalf of
commercial fishermen against Gladstone Ports Corporation for losses alleged to
result from the large-scale contamination of the Gladstone harbour and
surrounding waters from toxic dredge spill in 2011-12.  This decision to
terminate this investment comes as a result of LCM's review of its portfolio
of investments following recent adverse case outcomes with a focus on balance
sheet discipline and efficient deployment of capital.

The effect of LCM's termination of this investment is that the class action
has been settled on the basis of a full release between the parties of all
claims and a payment to Gladstone Ports Corporation relating to a portion of
its costs. The settlement is subject to Court approval which will  be heard
in the week of 27 October 2025. The payment to Gladstone Ports Corporation
will be fully covered by a policy of After the Event Insurance.

The investment was held on LCM's balance sheet at an amount of A$30.8 million
(£15.0 million), which is equal to the cash invested into the case, and will
now be written off.

The review of this investment has identified two avenues for potential
recovery of a material part of LCM's capital invested.  Firstly, we believe
that the firm of solicitors, who initially acted for the claimants in this
claim, overcharged for legal services supplied to the claimants and we have
commenced a costs assessment seeking reimbursement of a portion of the legal
costs paid by LCM.  Secondly, we are investigating a claim against those same
solicitors for breach of contract and negligence in association with the legal
services provided for the claim.

Strategic Review

For some time, LCM has been actively evaluating its strategic options and this
process has now progressed into a formal strategic review. To support this
effort, LCM has appointed Luminis Partners, a leading financial and corporate
advisory firm, to provide independent expertise and guide the review.

Further Case Updates

LCM is awaiting the outcome of a trial in relation to a separate investment in
UK commercial litigation, co-funded alongside Fund I, into which LCM has
invested A$20.6 million (£9.9 million) of its own capital.  The judgment is
expected within the next three weeks and LCM will provide an update as soon as
it is available.

Furthermore, having previously sought permission to appeal the commercial
arbitration loss that we announced on 1 April 2025, we expect to hear if
permission has been granted in the near term and will update the market
accordingly.

Full Year Results

Management will present the 2025 financial year results to the market on 1
October 2025.  As noted in a prior RNS released on 19 June 2025, management
will provide a strategic and financial update reflecting on recent
developments and outlining the Company's forward priorities.

Patrick Moloney, CEO of LCM commented: "The termination of the Gladstone class
action investment was a challenging but necessary decision, as ultimately the
way in which the claim was prepared and aspects of the expert evidence were
insufficient to support the case theory. This action, alongside recent cost
reduction efforts that we have taken and the formal strategic review, reflects
our proactive approach to navigating recent challenges."

 

 

 

 

Enquiries

 Litigation Capital Management                              c/o Tavistock PR
 Patrick Moloney, Chief Executive Officer

 David Collins, Chief Financial Officer

 Cavendish (Nomad and Joint Broker)                         Tel: 020 7523 8000
 Jonny Franklin-Adams and Isaac Hooper (Corporate Finance)

 Tim Redfern and Jamie Anderson (Corporate Broking)
 Canaccord Genuity (Joint Broker)                           Tel: 020 7597 5970
 Bobbie Hilliam

 Tavistock PR                                               Tel: 020 7920 3150
 Katie Hopkins                                              lcm@tavistock.co.uk

 Simon Hudson

 

NOTES TO EDITORS

Litigation Capital Management (LCM) is an alternative asset manager
specialising in disputes financing solutions internationally, which operates
two business models. The first is direct investments made from LCM's permanent
balance sheet capital and the second is third party fund management. Under
those two business models, LCM currently pursues three investment strategies:
Single-case funding, Portfolio funding and Acquisitions of claims. LCM
generates its revenue from both its direct investments and also performance
fees through asset management.

LCM has an unparalleled track record driven by disciplined project selection
and robust risk management.

Currently headquartered in Sydney, with offices in London, Singapore and
Brisbane, LCM listed on AIM in December 2018, trading under the ticker LIT.

www.lcmfinance.com (http://www.lcmfinance.com)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCFIFEEATIELIE