Business
Settlement in principle of litigation project
Settlement in principle of litigation project.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n \nRNS Number : 4327T Litigation Capital Management Ltd 20 March 2019 \n\n20 March 2019\nLitigation Capital Management Limited\n(\"LCM\" or the \"Company\")\n \nSettlement in principle of litigation project\n \nLitigation 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.\n \nHighlights\n§ 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\n§ Favourable metrics for the project with the expectation of returns ahead of the last reported cumulative performance\n§ The litigation project was managed to this settlement in principle in approximately 21 months\n§ Fourth litigation project that LCM will complete in the current financial year\n \nThe 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.\n \nThe 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.\n \nPatrick Moloney, CEO of LCM, said: \n\"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.\n \n\"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 litigati...