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Litigation Capital Management Ltd on Monday ended its investment in a class action suit related to alleged water contamination, amid a company review. The Sydney-based asset manager focused on dispute financing said the case was brought against Gladstone Ports Corp on behalf of commercial fishermen, who had claimed losses from a 2011-12 toxic dredge spill in Gladstone harbour. ‘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,’ LCM explained. Chief Executive Patrick Moloney called it ‘a challenging but necessary decision’ as part of the firm’s ‘cost reduction efforts’. The asset manager will write off the investment, held on its balance sheet at A$30.8 million, or £15.0 million. As a result, the class action will be settled with full release of claims, and a payment to cover part of Gladstone Ports Corp’s costs, which LCM said will be covered by after-the-event insurance. The settlement requires court approval at a hearing on October 27. LCM aims to recover some of the capital invested in the class action via two possible routes. It has begun an assessment of legal costs and is pursuing partial reimbursement on the grounds that solicitors ‘overcharged’ LCM for their services. LCM is also investigating a claim of negligence and breach of contract by the same soliciting firm. Alongside the investment write-off, the asset manager has entered ‘a formal strategic review’, hiring advisory firm Luminis Partners for support. Separately, LCM is awaiting the judgment on a UK trial, expected within the next three weeks, into which it has invested £9.9 million. The asset manager also aims to update ‘in the near term’ on whether it has permission to appeal a commercial arbitration loss announced back in April. The firm publishes full-year results on October 1, which will be paired with further information on ‘forward priorities’, it said. LCM shares were down 17% at 32.20 pence on Monday afternoon in London, and have slipped 68% in the past 12 months. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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