6th Jan 2020 12:51
(Alliance News) - RBG Holdings PLC reported on Monday the pre-trial settlement of Project Blue Sky, one of its internally funded litigation cases.
The legal services firm, previously known as Rosenblatt Group PLC, said Project Blue Sky was a damages-based agreement for a shareholder dispute case.
The parties have agreed to a settlement "just over a year since the claim was filed", and a year earlier than the scheduled trial at the end of 2020, the company noted.
"This has therefore enhanced the group's internal rate of return on the investment," the company said.
RBG Holdings said it has also part-financed the case in line with its strategy. The return of the company's investment in the case, in terms of cash and time, was 184% with and internal rate of return of 317%.
The company said Project Blue Sky is its smallest self-funded litigation case, and the company has invested GBP2.5 million in 11 other cases which are yet to conclude.
"The settlement, while not material in terms of the group's forecast full-year financial results, is, however, the first successful completion of a case that the group has invested in since its flotation in May 2018," RBG Holdings said.
"It demonstrates the significant returns that can be achieved through the group's litigation finance strategy," the company noted.
In September last year the company had said it acquired sell-side corporate finance boutique Convex Capital Ltd for GBP22 million in total and changed its own name to reflect the significance of the deal.
RBG Holdings shares were up 2.2% in London at 94.50 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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