Litigation Cap. Mgmt - Class Action Investment and Strategic Review

15 September 2025

Litigation Capital Management Limited

("LCM" or the "Company")

Termination of Class Action Investment and Commencement of Strategic Review

Termination of Class Action Investment

Litigation Capital Management Limited (AIM:LIT), an alternative asset manager specialising in dispute financing solutions internationally, announces that it has terminated its investment in a class action brought on behalf of commercial fishermen against Gladstone Ports Corporation for losses alleged to result from the large-scale contamination of the Gladstone harbour and surrounding waters from toxic dredge spill in 2011-12.  This decision to terminate this investment comes as a result of LCM's review of its portfolio of investments following recent adverse case outcomes with a focus on balance sheet discipline and efficient deployment of capital.

The effect of LCM's termination of this investment is that the class action has been settled on the basis of a full release between the parties of all claims and a payment to Gladstone Ports Corporation relating to a portion of its costs. The settlement is subject to Court approval which will  be heard in the week of 27 October 2025. The payment to Gladstone Ports Corporation will be fully covered by a policy of After the Event Insurance.

The investment was held on LCM's balance sheet at an amount of A$30.8 million (£15.0 million), which is equal to the cash invested into the case, and will now be written off.

The review of this investment has identified two avenues for potential recovery of a material part of LCM's capital invested.  Firstly, we believe that the firm of solicitors, who initially acted for the claimants in this claim, overcharged for legal services supplied to the claimants and we have commenced a costs assessment seeking reimbursement of a portion of the legal costs paid by LCM.  Secondly, we are investigating a claim against those same solicitors for breach of contract and negligence in association with the legal services provided for the claim.

Strategic Review

For some time, LCM has been actively evaluating its strategic options and this process has now progressed into a formal strategic review. To support this effort, LCM has appointed Luminis Partners, a leading financial and corporate advisory firm, to provide independent expertise and guide the review.

Further Case Updates

LCM is awaiting the outcome of a trial in relation to a separate investment in UK commercial litigation, co-funded alongside Fund I, into which LCM has invested A$20.6 million (£9.9 million) of its own capital.  The judgment is expected within the next three weeks and LCM will provide an update as soon as it is available. 

Furthermore, having previously sought permission to appeal the commercial arbitration loss that we announced on 1 April 2025, we expect to hear if permission has been granted in the near term and will update the market accordingly.  

Full Year Results

Management will present the 2025 financial year results to the market on 1 October 2025.  As noted in a prior RNS released on 19 June 2025, management will provide a strategic and financial update reflecting on recent developments and outlining the Company's forward priorities. 

Patrick Moloney, CEO of LCM commented: "The termination of the Gladstone class action investment was a challenging but necessary decision, as ultimately the way in which the claim was prepared and aspects of the expert evidence were insufficient to support the case theory. This action, alongside recent cost reduction efforts that we have taken and the formal strategic review, reflects our proactive approach to navigating recent challenges."

Enquiries

NOTES TO EDITORS

Litigation Capital Management (LCM) is an alternative asset manager specialising in disputes financing solutions internationally, which operates two business models. The first is direct investments made from LCM's permanent balance sheet capital and the second is third party fund management. Under those two business models, LCM currently pursues three investment strategies: Single-case funding, Portfolio funding and Acquisitions of claims. LCM generates its revenue from both its direct investments and also performance fees through asset management.

LCM has an unparalleled track record driven by disciplined project selection and robust risk management.

Currently headquartered in Sydney, with offices in London, Singapore and Brisbane, LCM listed on AIM in December 2018, trading under the ticker LIT.

www.lcmfinance.com