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Litigation Capital Management (AIM:LIT) announces settlement in principle of litigation project

March 20, 2019

Litigation Capital Management (AIM:LIT) announces settlement in principle of litigation project

Litigation Capital Management Limited (AIM:LIT), a leading international provider of litigation financing solutions, announces that a settlement in principle has been reached in respect of one of its litigation projects.

Highlights

  • The project relates to an open class action LCM funded on behalf of certain former shareholders in a resources company formerly listed on the ASX
  • Expected to contribute between A$8-10 million to EBITDA for the current financial year to 30 June 2019; with all capital invested also being recovered
  • Favourable metrics for the project with the expectation of returns ahead of the last reported cumulative performance
  • The litigation project was managed to this settlement in principle in approximately 21 months
  • Fourth litigation project that LCM will complete in the current financial year
  • The settlement in principle of the class action will be documented in a Deed of Settlement that is expected to be executed shortly
The project relates to an open class action LCM funded on behalf of certain former shareholders in a resources company formerly listed on the ASX. The other party is an international professional services company and prior to a final hearing (scheduled before the Supreme Court of New South Wales), both parties participated in a mediation where the settlement in principle was reached. The settlement in principle of the class action will be documented in a Deed of Settlement that is expected to be executed shortly. The terms of the settlement are confidential, and the settlement is then subject to court approval. Class actions represent one of several types of litigation projects that LCM provides funding for across single-case and portfolio funding, as well as international arbitration, commercial claims and claims arising out of insolvency.

Patrick Moloney, CEO of LCM, said: 

“This settlement in principle demonstrates LCM’s experience in class actions in Australia, while producing favourable metrics through active project management. We have delivered a successful resolution for former shareholders in this resources company within a relatively short time period for a class action of this type.

“We remain encouraged by all the opportunities LCM is seeing as a London listed company and while class actions are part of our heritage, we have a diverse portfolio and pipeline of litigation projects including insolvency, international arbitration and corporate portfolios.”

About LCM Litigation Capital Management (“LCM”) is a leading international provider of litigation financing solutions. This includes single-case and portfolio across class actions, commercial claims, claims arising out of insolvency and international arbitration. LCM has an unparalleled track record, driven by effective project selection, active project management and robust risk management. Headquartered in Sydney, with offices in London, Singapore, Brisbane and Melbourne, LCM has been listed on AIM since December 2018, trading under the ticker LIT. As at 31 December 2018, LCM’s cumulative IRR calculated since 2012 (inclusive of losses) was 78%. Similarly, LCM’s cumulative ROIC was 117%. Both the IRR and ROIC are exceptional figures for the industry and are testament to the consistent quality of LCM’s approach to funding litigation projects and investments. The average time to completion was 27 months, as at 31 December 2018. www.lcmfinance.com
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Having deployed £125m in funding across a range of case types, Sentry now has access to an even broader funding marketplace, covering 34 global jurisdictions. Finance is provided by 13 funders, five of which are members of the Association of Litigation Funders.

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Sentry Funding is an SaaS (software as a service) technology provider that gives solicitors access to a diverse marketplace of litigation funders. It works with solicitors, funders and third-party providers to ensure claimants are getting the most efficient service for their funding needs. 

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