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LCM Faces Setback in High Court Litigation Judgment

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LCM Faces Setback in High Court Litigation Judgment

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Litigation Capital Management ( (GB:LIT) ) just unveiled an announcement.

Litigation Capital Management (LCM) announced that the High Court in London delivered a judgment against its funded party in a commercial litigation claim. LCM had invested £9.9 million of its own capital, alongside £6.1 million from Fund I, with the investment previously valued at £26.5 million on LCM’s balance sheet. Despite the unfavorable judgment, adverse costs risk is covered by ATE insurance, and LCM is reviewing the judgment to determine potential next steps with its funded party and legal representatives.

The most recent analyst rating on (GB:LIT) stock is a Hold with a £30.00 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.

Litigation Capital Management Limited faces challenges with declining revenue and significant legal and operational risks, as highlighted by recent corporate events. The stock’s technical indicators suggest a bearish trend, and the negative P/E ratio is a concern. While financial management is strong, these risks weigh heavily on the overall score.

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

More about Litigation Capital Management

Litigation Capital Management (LCM) is an alternative asset manager that specializes in dispute financing solutions on an international scale. The company operates through two business models: direct investments from its permanent balance sheet capital and third-party fund management. LCM focuses on three investment strategies: single-case funding, portfolio funding, and acquisitions of claims. Headquartered in Sydney, with offices in London and Singapore, LCM generates revenue from both direct investments and performance fees through asset management. It has been listed on AIM since December 2018, trading under the ticker LIT.

Average Trading Volume: 512,958

Technical Sentiment Signal: Sell

Current Market Cap: £30.97M

For a thorough assessment of LIT stock, go to TipRanks’ Stock Analysis page.

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