Third-party litigation funder Argentum Capital has resigned its membership of the Association of Litigation Funders (ALF).
It follows the news in February that the company had been delisted by the Channel Islands Stock Exchange and that serious allegations had been made about the activities of Centaur Litigation SPC, an investor in Argentum.
Argentum – whose non-executive chairman is former Court of Appeal judge Sir David Keene – has gained a high profile in recent months due to its backing of the Stewarts Law action brought by institutional shareholders against RBS over its 2008 rights issue.
In a statement issued last week, ALF chairman Leslie Perrin said: “Since 18 February 2014, the board of the ALF has been investigating press reports that were highly critical of the fundraising practices of Centaur Litigation SPC, an entity said to be closely associated with ALF member, Argentum Capital Ltd.
“Recently, the ALF board put a series of important questions to the management of Argentum about the precise role played by Argentum in the matters reported in the press. During this round of enquiries, Argentum offered to withdraw from membership of the AFL, and the board of ALF accepted that offer on 24 April.
“With immediate effect, Argentum is no longer a member of the ALF and the important protections that are available to counterparties who deal with ALF members are no longer available to those who deal with Argentum in the future.
“The ALF board retains jurisdiction over matters involving the conduct of Argentum during the period of its membership of the ALF.”
As of yesterday, Argentum’s website appears to be offline.