Litigation Capital Management (LON:LIT) has entered into a new litigation finance agreement with Edward Vermeer and David Boyle, to support a collective action launched against Govia Thameslink Railway Ltd (GTR) and its parent companies, The Go-Ahead Group PLC and Keolis (UK) Ltd.
Vermeer and Boyle, seasoned rail campaigners, are applying to start the action in the Competition Appeal Tribunal, it noted.
The company will provide a litigation finance facility to fund the claim, which alleges that Govia Thameslink Railway abused its dominant position in the market for rail services on the London-Brighton mainline, in breach of the Competition Act 1998.
Part of the claim alleges that GTR is infringing UK competition rules by issuing fares restricting travel to Southern and/or Thameslink train brands on the London-Brighton mainline and then inflating the prices passengers must pay for fares allowing travel on two or all three GTR train brands (Gatwick Express, Southern and Thameslink).
"We are seeing an increasing number of competition-based claims in the UK,” said LCM chief executive Patrick Moloney. “These types of claims are made possible through litigation funding as the economics would not permit a victim of anti-competitive behaviour to bring a claim alone without external support.”
Vice chair Nick Rowles-Davies, meanwhile, added: “We are delighted to support this action with this significant litigation funding agreement as LCM builds its position as a leader in disputes funding in the UK.
“Importantly, this agreement demonstrates our commitment to supporting and facilitating opportunities which benefit consumers and the broader communities in which we operate."