REG - Litigation Cap. Mgmt - Judgment Delivered in Class Action Investment

Litigation Capital ManagementAnnouncement

21/02/2025 07:00

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RNS Number : 0137Y  Litigation Capital Management Ltd  21 February 2025

21 February 2025

Litigation Capital Management Limited

("LCM" or the "Company")

Judgment Delivered in Class Action Investment

 

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager
specialising in dispute financing solutions internationally, announces that
the Federal Court of Australia has delivered a judgment in the class action
funded by LCM on behalf of shareholders in Quintis Limited (Quintis) a company
which previously operated an extensive plantation of Indian sandalwood trees
in northern Australia (the Judgment).

The Judgment found that both the former director of Quintis and its auditors,
Ernst & Young engaged in misleading and deceptive conduct in relation to
the financial statements issued by Quintis.  However, the Judgment found that
LCM's funded party failed to establish that this misleading and deceptive
conduct caused them loss and damage and was therefore unsuccessful.  There is
a right of appeal from the Judgment which must be filed within 28 days of
final orders being made (which has not yet occurred). LCM is considering the
Judgment with the legal team and the merits of any appeal.

LCM has invested A$13.2m of its own balance sheet capital into the case. LCM
has a policy of insurance in place providing an indemnity in relation to the
adverse costs exposure of this claim.

Patrick Moloney, CEO of LCM commented: "In this shareholder class action, our
funded claim established misleading and deceptive conduct by the director and
the auditors on the facts before the court.  The case did not succeed in
determining loss caused by this conduct and we are considering carefully with
our legal team why this is the case. It is an unusual outcome that the court
found that the financial statements in question were misleading, but that this
did not result in loss for the shareholders in Quintis. Our focus now is on
assessing the Judgment and determining the best course of action alongside our
legal team. We remain committed to our disciplined approach in managing risk
and capital across our portfolio."

 

 

Enquiries

 Litigation Capital Management
 Patrick Moloney, Chief Executive Officer

 David Collins, Chief Financial Officer

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

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

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, Brisbane
and Melbourne, LCM listed on AIM in December 2018, trading under the ticker
LIT.

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

 

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