Litigation Capital facing AUD 12.9m payment after unsuccessful class action.


Litigation Capital Management said on Wednesday that it faced a potential payment of AUD 12.9m (£6.4m) after adverse costs were quantified in an unsuccessful Australian class action it funded against state-owned electricity generators.

  • Litigation Capital Management Limited (DI)
  • 24 December 2025 12:59:04
Litigation Capital Management

Source: Sharecast

The AIM-traded dispute finance specialist said the Federal Court of Australia determined the costs payable following the dismissal of the Queensland electricity class action against Stanwell Corporation and CS Energy.

It said the court quantified costs of AUD 16.2m payable to each respondent, taking the total adverse costs award to AUD 32.4m.

LCM said it had after-the-event insurance in place to cover adverse costs in the case.

After full use of that policy, an uninsured component of AUD 19.9m remained, of which LCM expected to pay AUD 12.9m, with the balance to be borne by investors in its Fund 1 vehicle.

The company noted that an appeal against the original judgment, announced in December last year, had been filed and was scheduled to be heard over two weeks from 2 March.

LCM said it was also considering a separate appeal by the claimant against the quantification of the costs.

The company added that it remained in proactive discussions with its principal lender, while the strategic review first announced in September was continuing, with a further update expected in the new year.

“This is a very expensive and complicated piece of litigation which has resulted in large cost orders in favour of the respondents,” said chief executive Patrick Moloney.

“This quantification was of ordinary and not indemnity costs orders and so are not a reflection of the conduct of the claimant or LCM or of the strength of the claim.”

At 1140 GMT, shares in Litigation Capital Management were down 14.57% at 7.33p.

Reporting by Josh White for Sharecast.com.


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