Litigation Capital to fund competition action against GTR

(Sharecast News) - Dispute financing provider Litigation Capital Management has entered into a new litigation finance agreement with Edward Vermeer and David Boyle, it announced on Friday.

The AIM-traded firm said the financing was for a litigation application to start a collective action launched in the Competition Appeal Tribunal against Govia Thameslink Railway (GTR) and its parent companies, the London-listed Go-Ahead Group, and Keolis UK.

It said the agreement to provide a litigation finance facility would fund a claim alleging GTR abused its dominant position in the market for rail services on the London-Brighton mainline, in breach of the Competition Act 1998.

"We are seeing an increasing number of competition-based claims in the UK," said Litigation Capital chief executive officer 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."

GTR operates commuter and regional services in London and the South East of England on the Thameslink, Southern and Great Northern franchise area, under the Gatwick Express, Great Northern, Thameslink and Southern brands.

Litigation Capital said it remained focused on "sustainable, long-term growth" through its strategic relationships, and the development of a "high-quality" portfolio of investments.

"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," said the company's executive vice-chairman Nick Rowles-Davies.

"Importantly, this agreement demonstrates our commitment to supporting and facilitating opportunities which benefit consumers and the broader communities in which we operate."

At 1020 BST, shares in Litigation Capital Management were up 1.76% at 132.8p.