REG - Litigation Cap. Mgmt - Adverse Costs Order in Class Action Investment

Litigation Capital ManagementAnnouncement

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RNS Number : 8063M  Litigation Capital Management Ltd  24 December 2025

24 December 2025

Litigation Capital Management Limited

("LCM" or the "Company")

Adverse Costs 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 quantified the costs in the class action
funded by LCM on behalf of the Queensland users of electricity against
Stanwell Corporation Ltd and CS Energy Ltd ("QLD Electricity Claim").

On 4 December 2024, LCM announced that the claimant had been unsuccessful in
the QLD Electricity Claim (the "Judgment").  The Judgment also required the
claimant to meet the costs of Stanwell Corporation Ltd and CS Energy Ltd
incurred in defending the QLD Electricity Claim.  These costs have now been
quantified as follows:

1.    A$16.2 million payable to Stanwell Corporation Ltd; and

2.    A$16.2 million payable to CS Energy Ltd.

LCM has a policy of ATE insurance available to cover adverse costs for this
case.  After full use of this insurance policy  there is an uninsured
component of A$19.9 million which exposes LCM to a payment of A$12.9 million
with the remainder to be paid by Fund 1 investors.

As announced on 28 February 2025, an appeal has been filed against the
Judgment.  That appeal has been set down for hearing for two weeks commencing
on 2 March 2026.  LCM is also giving consideration to the claimant bringing a
separate appeal against the quantification of these costs.

LCM continues to be in proactive conversations with its principal lender. The
Strategic Review that was first announced on 15 September 2025 remains ongoing
and management will provide an update on its progress in the new year.

Patrick Moloney, CEO of LCM commented: "This is a very expensive and
complicated piece of litigation which has resulted in large cost orders in
favour of the respondents.  This quantification was of ordinary and not
indemnity costs orders and so are not a reflection of the conduct of the
claimant or LCM or of the strength of the claim."

Enquiries

 Litigation Capital Management
 Patrick Moloney, Chief Executive Officer

 David Collins, Chief Financial Officer

 Cavendish (Nomad and Broker)                               Tel: 020 7220 0500
 Jonny Franklin-Adams and Isaac Hooper (Corporate Finance)

 Tim Redfern (Corporate Broking)

 

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

 

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