Alternative asset manager Litigation Capital Management (LIT:AIM), which specialises in dispute financing, has seen its shares fall 75% over the last year and recently marked a new five year low of 25.8p.

The share price weakness reflects a string of announced case losses, the most recent of which happened on 19 June when a high court judge delivered an adverse judgment in a commercial litigation matter funded by the company.

Litigation Asset Management had contributed £3.4 million from its own balance sheet and a further £8.2 million invested from a fund it manages for third party clients. The investment was recorded at a fair value of £5 million on the balance sheet on 31 December 2024.

The company also provided a second-half trading update to 30 June which revealed a modest number of realisations comprised of two successful and two unsuccessful investments.

These exclude the commercial litigation matter and three previously announced cases which are subject to appeal. The company said it had paused marketing for a third fund despite strong interest from existing and new investors.

This was due to uncertainty surrounding potential tax changes in the US litigation market, as well as political developments affecting US university endowments. 

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