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Burford Rivals Seek to Distance Themselves From Fallout (1)

Aug. 8, 2019, 1:38 PM

IMF Bentham Ltd, caught in the fallout from competitor Burford Capital Ltd’s selloff Wednesday, said there were “fundamental differences” in how it and Burford accounted for litigation-finance assets.

IMF Bentham’s Australian-listed shares fell as much as 10.5% on Thursday, before paring losses to 2.4%. Burford’s shares halved on Wednesday after U.S. short-seller Muddy Waters published a report claiming that it had manipulated return metrics and misled investors about how it accounts for gains on ongoing litigation.

IMF Bentham and Burford, as well as Litigation Capital Management and Manolete Partners, provide cash to law firms or plaintiffs to finance a lawsuit, ...

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