Burford Capital Ltd. said a U.S. securities class action case filed in August 2019 against the company has been dismissed entirely after plaintiffs withdrew the lawsuit.
The lawsuit was filed by purchasers of securities in the British litigation finance firm, seeking to recover damages after U.S. hedge fund Muddy Waters LLC accused Burford of misleading investors with the metrics it reports and criticized the accounting it uses to value litigation cases. The report led to a decline in Burford's shares.
Meanwhile, the company named Aviva Will and David Perla co-COOs and Craig Arnott as deputy chief investment officer as part of a management reshuffle.
Burford confirmed that Chairman Peter Middleton and board member David Lowe will leave its board at its annual general meetings in May and May 2021, respectively. Burford noted that it has already commenced a search for two new independent board directors and expect to nominate two candidates for shareholder consideration as part of board elections at the May AGM.
The company also intends to nominate CEO Christopher Bogart as a board member at the meeting in May, subject to shareholder approval, adding that it aims to keep the CEO and chairman roles separate.
Burford also provided an update on its plans to list in the U.S. on either Nasdaq or the New York Stock Exchange or to migrate its current listing on the London Stock Exchange's AIM market to the bourse's main market. The company said it has completed preparations related to the potential U.S. listing and expects to submit a registration statement to the U.S. Securities and Exchange Commission in April, following the planned release of its 2019 results on March 24. The company does not aim to issue new equity as part of the U.S. listing, it noted.