Dispute resolution financing company Litigation Capital Management Ltd (AIM:LIT) today announced that a settlement has been reached in an Australian class-action lawsuit funded by the AIM-listed group.
The class action was brought in the Federal Court of Australia against the Commonwealth of Australia on behalf of persons who are alleged to have suffered loss and damage as the result of the contamination of their land at seven sites around Australia in proximity to Department of Defence military bases.
The Commonwealth has agreed to pay the sum of AUD$132.7mln (£71mln) to resolve the dispute rather than face a hearing scheduled for May 15.
All other terms of the settlement are confidential, and the settlement and Litigation Capital's fee are subject to court approval.
Funding for the class action was sourced directly from the company’s balance sheet and fund investors.
Litigation Capital will provide a further announcement in relation to revenue and profit generated from the settlement in due course.
Chief executive Patrick Moloney commented: "This settlement demonstrates Litigation Capital's experience in class actions in Australia.
Producing an outcome for the parties without incurring the expense of a contested hearing, the settlement is a positive resolution both for Litigation Capital and for the class members, who have been able to utilise Litigation Capital's funding in order to achieve this result.
“We are pleased to have been able to support class members in upholding both environmental and health protections."