Litigation Capital Manag... Share Discussion Threads

[djderry] 07/7/2021 07:21

And another thing,or two.This notion that an investment in a case is worthy of an RNS because it may materially affect the company is pretty far fetched.As with all single litigation matters,it is binary.It may be won,or lost,or settled with a range of outcomes.It may be 'a home run' or,an unmitigated disaster.And that warrants an RNS? So,from now on,when an employee shows up for work,we might expect an RNS?
The truth is,we will only know the true outcome over time,perhaps years,perhaps much longer.( We all know the ' average' duration of cases but,on an individual matter,there is no such thing.)
( Not that I would encourage it,but if they were announcing a large portfolio financing arrangement,one might make a case for it warranting some kind of announcement,but hardly an RNS).
Secondly,some poster alluded to the 'clean' accounting practices of LIT compared to Bur.You are wrong.Bur fair values and has never ( less than 1%)had to write down matters subsequently.In other words,they invariably underestimate their subsequent realised gains,to a substantial degree!
Bur takes its expenses through the P and L, whereas LIT treats its litigation as a fixed contract ( with a static value) and capitalises its expenses,so we are left totally in the dark and you say that's ' clean' or somehow superior? I don't think so.
So,to end,I began by making the point,LIT should not be announcing investments as an RNS.My point stands,for the reasons I have outlined.
As an investor in LIT,I would welcome an announcement when the case comes to fruition,if it is material.

[someuwin] 06/7/2021 20:23

William Panlilio joins Litigation Capital Management (LCM) in Singapore

July 6, 2021 Announcement, Commercial, Public

Litigation Capital Management Limited, a global provider of disputes funding, publicly listed on the London Stock Exchange’s AIM market, is pleased to announce the hire of William Panlilio as an Investment Manager based in Singapore.

With extensive experience in international arbitration and cross-border disputes, William joins LCM after more than five years with King & Spalding where he was part of that firm’s Trial and Global Disputes practice, operating in the energy, infrastructure, construction, technology and mining sectors, and conducting arbitrations involving States and State-owned or affiliated entities.

Prior to that, William was an Assistant Legal Counsel at the Permanent Court of Arbitration in The Hague, The Netherlands for close to two years. While at the court, he assisted arbitral tribunals in treaty and commercial arbitrations involving various combinations of States, State entities, international organisations and private parties. William is a US qualified lawyer who started his career Orrick, Herrington & Sutcliffe in New York, specialising in complex commercial litigation, financial institutions litigation, and cases involving U.S. foreign relations law, including the Alien Tort Statute.

Commenting on William’s hire, LCM’s Head of Investments (APAC), Susanna Taylor said: “We are very pleased to welcome William to the LCM team. He is a highly experienced practitioner with an impressive track record of commercial and treaty arbitrations as well as broader corporate and commercial expertise. We are experiencing a significant uptick in funding applications in the APAC region, particularly those originated from Singapore, and William is well placed to assist LCM to take advantage of the recent changes in Singapore to allow litigation funding for domestic arbitration and International Commercial Court claims. William is a valuable addition to our global team of high-performing investment managers”.

Litigation Capital Management (LCM) is a leading international provider of dispute financing solutions. This includes single-cases and corporate and law firm portfolios across international arbitration, commercial claims, class actions and claims arising out of insolvency, including assignments. LCM has an unparalleled track record, driven by effective project selection and robust risk management.

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

[mrnordic] 06/7/2021 19:22

I do have one question that I was hoping that someone in this forum cold answer: This new case is an opt-out class action that will be brought before the CAT. Does English law contain provisions that ensures that a funders gets paid from the cash flow from the counterparty when funding an opt-out? With respect to opt-ins, the funder would normally «build a book» prior to advancing the claim and thereby enter into a contract with each group member. However, in case of an opt-out, I assume that the Court would have to approve the settlement. Can English courts issue so-called «commun fund orders» (CFOs) like in Australia, or is that an open question that would have to be answered by the Supreme Court?

[djderry] 06/7/2021 16:21

Thank you 74 Tom and Pete bane for your replies.74,if you use crude language,you will be filtered.
So,let me begin with Pete.You are incorrect when suggesting I post under any other pseudonym or have ever done so.I am a long term investor,among many other things.My largest single stock position is,indeed,in Burford,well north of half a million in your
currency,sterling.
74,again raises all the old chestnuts raised by Muddy Waters ,each of the accusations having been thoroughly shown up by both Burford and independent brokers.Instead of repeating patently false and misleading scare stories,you need to examine the company's due diligence process and track record.What you fail to understand or,perhaps,choose not to,is that fair valuing of assets is required under IFRS rules and LIT may well need to adopt similar measures.
What you also seem,or choose not to understand,is that fair value gains are
a very valuable tool for investors ,as we can see the progress of the portfolio.Please read the commentary on their full year results.
As usual,all the old tropes are flung out when sensitive posters are challenged.No, sovereign debt is not the same as a judgement.
No,the Petersen ( and Eton Park) matters are not some millstone hanging around Burford .They have produced ten times their original investment ( less costs) already and that is before any judgement of the SDNY!
In finishing,I posted here on the basis there would be a sharing of views.I'm not interested in posters attacking one another because they don't hold to the same view.I uphold my right to give my views and will not be brow-beaten by some baying mob and the rent-a-crowd.
If you wish to reply,be civil and stick to the facts.

[solonic] 06/7/2021 16:01

And someuwin too john!

[pete_bane] 06/7/2021 12:09

Excellent post 74tom. I was busy scribbling and hadn't seen your very thoughtful post.

[someuwin] 06/7/2021 11:52

I see that BA has settled on a huge data breach case.

"British Airways has reached a settlement to resolve a class action lawsuit over a data breach in 2018 involving the personal and financial details of hundreds of thousands of customers..."

"PGMBM had revealed in January that the airline could face customer claims totalling £800m - with payouts of up to £2,000 per person."

No reason the think that LIT were involved in funding this case. But I'm sure there must be many similar cases ongoing with large scale data breaches and hacking becoming more prevalent.

[djderry] 06/7/2021 11:17

I'm not prepared to post under a header titled ' a newer freer (??) thread only for honest posters' so this will have to do.As an aside,I have all the idiots filtered but not the investors.You know who you are.As usual,all the caveats apply.I don't have a monopoly on wisdom,the shareprice tells you next to nothing about a company,etc,etc.
I hold a 'watching brief' in LIT (single digit tens of thousands) and the share price is up 79%.I invested originally because I like the asset class and would have originally invested in Juridica.My core holding is Burford.My rationale for holding LIT is that,mostly,they seem to be following the Bur playbook and their UK branch is headed by a former Bur guy.They are much smaller and so one might speculate that some really good results could really move the needle.
But it's more of a punt than an investment.Their cost of capital is quite high and the investment portfolio ,compared to Bur,is tiny.This notion of announcing investments in cases through an RSN is fairly bizarre.Imagine a footballer announcing ' I'm going to kick a ball.'As the Bard would say,' full of sound and fury,signifying nothing.As an investor,I need to be able to measure the metrics.They are revealed in the full year and interim results.I need to test their due diligence capacity and that can only be seen in the outcome to the cases.Of course,deployments can be seen as a proxy.But,unless I can get a sense of how the deployments are going ( as I can with Bur when I dig into their fair value gains,) LIT will have to remain in the ' watching brief' portfolio.

[74tom] 06/7/2021 10:35

Indeed, nice work!

"Preliminary indications show that millions of passenger journeys will have been affected by the alleged unlawful conduct on the part of GTR."

[robsy2] 06/7/2021 10:29

Good find Some and thanks for sharing.

[someuwin] 06/7/2021 10:16

More details on the claim at this link.

Dating from 2015 to present day "Preliminary indications show that millions of passenger journeys will have been affected by the alleged unlawful conduct on the part of GTR."

Sounds like it could be huge case.

[greenknight1] 06/7/2021 07:40

Great to see another high profile case. I would have liked more information on the size of the claim (although I expect this can not be disclosed). The links provided are not showing much information. Must be a substantial case however to warrant an RNS so great news.

[someuwin] 06/7/2021 07:28

Excellent news.

[sambessey] 06/7/2021 07:03

Boom. Another financing agreement in place. All coming together rather nicely. Should keep the naysayers quiet for a day or two :)