Burford gets green light for US listing after multi-million law suits dropped

Multi-million dollar legal actions by two US law firms against Burford Capital has been dropped, paving the way for the litigation financier’s dual listing in New York.

The actions were launched against Burford by US law firms Rosen Law and Schall Law in August last year, which claimed Burford had overstated returns on investments and had questionable financial reporting and corporate governance.

The issues were drawn to investors’ attention after the financier came under a brutal short attack by hedge fund Muddy Waters last summer. But today Burford shares rose 7% after the firm said “class action had been withdrawn by the plaintiffs and dismissed in its entirety”.

The London AIM-listed firm now has the green light on its plans for a second listing on the New York Stock Exchange or the Nasdaq, making it the first listed litigation financier in the US. No date for this dual listing was provided.

After pressure from Muddy Waters, Burford chief executive Christopher Bogart and chief investment officer Jonathan Molot will disclose their pay in the 2019 annual financial report, as the firm tries to reassure US investors over transparency.