Business
Update following Supreme Court ruling
Update following Supreme Court ruling.
About this update from Litigation Capital Management Ltd
[{"type":"text","content":"\n\n27 July 2023\nLitigation Capital Management Limited\n(\"LCM\" or the \"Company\")\n \nUpdate following Supreme Court ruling\n \n \nLitigation Capital Management Limited (AIM:LIT), a leading alternative asset manager specialising in disputes financing solutions internationally, provides clarity following yesterday's UK Supreme Court Ruling in relation to PACCAR Inc & Ors v Competition Appeal Tribunal & Ors, Case ID: 2021/0078. \nThe decision will have very limited or no impact on LCM's portfolios of dispute investments in terms of future value. The Company had no involvement or funding obligation in relation to the matter referred to.\nAs a management team, fully endorsed by the Board, we continually focus on portfolio diversification. The Company believes that this decision will have a potential positive impact on our future market share, given the lack of diversity in a number of our key competitors.\nThe decision has the potential to impact litigation funding arrangements entered into within the United Kingdom only to the extent that the funders interest or return is solely calculated as a percentage of the Courts award in favour of the funded party.\nAs investors are aware, LCM structures its funding contracts so that its return is calculated as a rising multiple of invested capital over time. This has been a deliberate decision and those arrangements are unaffected by today's judgement. Therefore, LCM's existing investments and its business model moving forward is not adversely affected by the decision. This has been a focus of management discussions for an extended time and this ruling underlines the importance of this planning. The decision neither came as a surprise nor does it pose a risk to LCM's current investments or its business model. As stated above, we welcome this as a potential positive differentiator. \nWe have emphasised to investors for many years that we actively manage the construction of our portfolios of dispute investments across industry sector, dispute type, geography and jurisdiction. We also ensure that our portfolios of dispute investments is not adversely effected by concentration risk through size and capital commitment. Such discipline and diligence ensures that neither our existing investments nor our business mod...