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Litigation Capital Management Ltd on Friday said a class action it funded in Australia was unsuccessful. Shares in Litigation Capital Management were down 12% to 68.80 pence in London on Friday morning. The Sydney-based asset manager and provider of dispute financing said that the Federal Court of Australia delivered a judgement in the class action it funded on behalf of shareholders in Quintis Ltd, which operated a sandalwood tree plantation in northern Australia. The court ruled that the former director of Quintis and its auditors, Ernst & Young Global Limited, engaged in ‘misleading and deceptive conduct’ in financial statements. However, the court found that the claimants failed to prove that the conduct caused them loss and damage, and therefore the case was unsuccessful. Litigation Capital Management said there is a right of appeal which must be filed within 28 days of final orders being made. It is considering the judgement and the merits of an appeal. It has invested A$13.2 million, around $8.4 million, in the case. It said it has an insurance policy to provide indemnity related to the costs of this claim. Chief Executive Officer Patrick Moloney said: ‘It is an unusual outcome that the court found that the financial statements in question were misleading, but that this did not result in loss for the shareholders in Quintis. Our focus now is on assessing the judgment and determining the best course of action alongside our legal team. We remain committed to our disciplined approach in managing risk and capital across our portfolio.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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