Shares in Funding Circle Holdings PLC (LSE:FCH) climbed 7% after the lender said a long-running legal dispute involving Azzurro Associates had been resolved in Azzurro’s favour.
The case related to two defaulted loans originally issued through Funding Circle’s platform and later sold to Azzurro by investors.
The settlement, which exceeds the outstanding balance of the loans, confirms that the debts were validly assigned and payable to Azzurro, the company said.
It added that the outcome “validates our position” and reaffirmed that the loans and personal guarantees were never in doubt.
The resolution removes a legal overhang that had weighed on sentiment since February, when press reports first raised questions about Azzurro’s ability to pursue the claims.
Funding Circle shares rose 8.34p to 130.54p.