Litigation Capital Management

All articles about Litigation Capital Management.

Litigation Capital Management has provided a market update for the year ended 30 June 2021. Among other things, it reports that it received 572 applications for funding during the year of which 3% were converted into active investments, with an increase in high profile quality investments requiring increased resource allocation. Its total portfolio capital commitment is $181 million.
Litigation Capital Management is backing a prospective shareholder class action in Australia against Blue Sky Alternative Investments ("BLA"), a former ASX darling that faced difficulties after short-seller Glaucus reported on a number of practices that Glaucus argued inflated the value of BLA’s reported fee-earning assets under management. The company subsequently reduced its assets under management and saw its share price drop from around $12.50 to 18.5c before entering external administration, taking hundreds of millions in shareholder’s funds with it. The class action will be run by Piper Alderman.
Litigation Capital Management is backing a collective action launched in the UK's Competition Appeal Tribunal against Govia Thameslink Railway ("GTR") and its parent companies. The claim alleges that GTR abused its dominant position in the market for rail services on the London-Brighton mainline, in breach of the Competition Act 1998. The claim is being brought by law firm Maitland Walker LLP. Charles Hollander QC of Brick Court Chambers and David Went of Exchange Chambers have been engaged by Maitland Walker LLP to act as barristers for the claim. Exton Advisors advised the proposed class representatives.
In a decision that has significant implications for the Australian litigation funding industry, Piper Alderman partners Greg Whyte and Lillian Rizio have successfully defended a challenge to the validity of LCM’s funding arrangements in the Gladstone Fisheries class action. The High Court refused to hear Gladstone Ports Corporation’s appeal, preserving the Court of Appeal’s finding that the funding agreement could not be challenged on public policy grounds.
Litigation Capital Management is backing a claim in the liquidation proceedings of the Comet Group. At the time of its insolvency, Comet was the UK's second largest electrical retailer with 239 stores and 6,900 employees. Liquidators from FRP Advisory are bringing a claim against Darty, a multinational electrical retailer based in France, alleging that it received a £83 million preferential payment prior to Comet entering into administration.
Litigation Capital Management ("LCM") is backing Carilllion in a claim against its former auditors. Carillion was the largest corporate collapse in the building and construction industry in UK history. Now, certain Carillion entities which are in liquidation, are bringing a claim against KPMG for the conduct of its audits of the Group's financial statements. The losses which form the subject matter of the claim are expected to exceed £250 million.
Litigation Capital Management has released its interim results for the half year ended 31 December 2020. Assets under management have grown to A$322 million and the company is reporting a cumulative ROIC of 135% and an IRR of 78% over the past 9 and a half years. Similar to other funders, it notes that it has been receiving increased applications for insolvency and restructuring disputes as moratoriums against appointments are relaxed in global markets.
Litigation Capital Management Limited (AIM:LIT) has secured a US$50 million credit facility with Northleaf Capital Partners to provide the company with additional investment capital. Northleaf is a global private markets investment firm with experience in the litigation finance sector. The credit facility, which is secured against LCM's assets, is available for general corporate purposes and has an overall term of four years. The coupon comprises a LIBOR based rate of 8% per annum together with a profit participation calculated by reference to the profitability of LCM's direct investments. In all circumstances, the overall cost of the facility is capped at 13% per annum.

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