LCM Faces A$12.9m Net Hit After Adverse Costs in Failed Queensland Power Class Action

Litigation Capital Management ( (GB:LIT) ) has shared an announcement.

Litigation Capital Management has disclosed that the Federal Court of Australia has quantified adverse costs totalling A$32.4 million in the unsuccessful Queensland electricity class action it funded against Stanwell Corporation and CS Energy, with A$16.2 million payable to each defendant. After applying its after-the-event insurance, LCM faces an uninsured exposure of A$12.9 million, with the balance to be met by Fund 1 investors; the case is under appeal with a hearing scheduled for March 2026, and the company remains in discussions with its principal lender while its previously announced strategic review continues, underscoring both the financial impact and the ongoing uncertainty for stakeholders around this high-cost litigation.

The most recent analyst rating on (GB:LIT) stock is a Hold with a £9.00 price target. To see the full list of analyst forecasts on Litigation Capital Management stock, see the GB:LIT Stock Forecast page.

Spark’s Take on GB:LIT Stock

According to Spark, TipRanks’ AI Analyst, GB:LIT is a Neutral.

The overall stock score is primarily impacted by the company’s weak financial performance, characterized by declining revenues, profitability issues, and increased leverage. Technical analysis also indicates a bearish trend, with the stock trading below key moving averages and weak momentum indicators. The valuation is unattractive due to a negative P/E ratio and no dividend yield.

To see Spark’s full report on GB:LIT stock, click here.

More about Litigation Capital Management

Litigation Capital Management Limited is an alternative asset manager specialising in international dispute financing solutions, funding large-scale litigation such as class actions and other complex legal claims for a range of claimants and investors.

Average Trading Volume: 1,361,986

Technical Sentiment Signal: Sell

Current Market Cap: £10.4M

Find detailed analytics on LIT stock on TipRanks’ Stock Analysis page.