Litigation Capital Management Ltd (AIM:LIT) shares were off 7.4% on Wednesday morning following an adverse ruling in the Federal Court of Australia.
The judgment ruled against LCM's funded party, a class action of Queensland electricity users that accused Stanwell Corporation and CS Energy of illegally driving up electricity prices.
LCM, which finances disputes for a cut of the litigation reward, has invested AUS$25 million (£12.7 million) of its own balance sheet capital to support the case.
Chief executive Patrick Moloney stated: "We will carefully review the Federal Court's decision and, with the legal team, will assess the prospects of a successful appeal from the judgment.
“Our expectation has always been that an appeal in this case was likely, regardless of the initial outcome. We remain confident in the strength of the underlying claim."
lCM shares were swapping for 109.5p at the time of writing.