Litigation Capital Management

All articles about Litigation Capital Management.

The Full Court of Australia has ruled that litigation funding arrangements should not be considered managed investment schemes. In a judgment dated 16 June 2022, the Full Court of Australia  has sided with LCM in its appeal of the decision of the primary judge in Stanwell Corporation Limited v LCM Funding Pty Ltd. As a result, litigation funding arrangements in Australia will no longer be considered managed investment schemes, and litigation funders will be relieved from the burden of a "legislative and regulatory regime characterised by uncertainty, inconvenience and the potential for mischief by class action respondents."
LCM is backing a new representative action in the UK being brought by Mishcon de Reya on behalf of up to 1.6 million individuals against Google and DeepMind Technologies for the unlawful use of patients' confidential medical records. The claim arises out of an arrangement formed in 2015 between Google and DeepMind and the Royal Free London NHS Foundation Trust. The tech companies obtained and used a substantial number of confidential and private medical records without patients' knowledge or consent.
Litigation Capital Management (LCM) has announced its half year results ended 31 December 2021. The company saw a gross profit of A$13.9m (H121: A$5.4m) and a further 89 applications received in the two month period to 28 February 2022 which demonstrates an acceleration in momentum and return to normal operating conditions. Overall, at the ten-and-a-half-year mark, LCM saw an increase in investment performance metrics achieving a cumulative Return on Invested Capital (ROIC) of 162%, [including losses] and a cumulative IRR of 79% (HY 2021: 78%). 
LCM has announced the delivery of an award in favour of the funded party in an international arbitration, under the LCIA (London Court of International Arbitration) rules. The arbitration, seated in London and brought under the rules of the LCIA was for the determination of a construction dispute relating to a development in the Middle East. The investment forms part of LCM's Direct Investment Portfolio and was 100% funded from the company's balance sheet. The investment produced approximately £9.8 million in revenue and produced a 255% ROIC and a 195% IRR. The life of the investment was 26 months.
Litigation Capital Management has raised US $200 million of its targeted $300 million for its LCM Global Alternative Returns Fund II and brings LCM's total assets under management to US $450 million. The capital is coming primarily from existing investors, which includes a large endowment of a US University and the asset management division of a large global investment bank.
Litigation Capital Management (LCM) has announced its financial results for the year ended 30 June 2021. Despite the disruption caused by COVID, the company saw its number of applications increase from 522 in FY2020 to 572 in FY2021, though the amount of capital committed to new cases in the year was A$109 million, down from A$147 million in the previous year. Overall, the company reports a 10-year cumulative portfolio IRR of 78%.
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.

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