IMF Bentham Limited (ASX:IMF) has advised that subject to court approval, it will cease to fund the shareholder class action against Spotless Group Holdings (ASX:SPO).
The litigation funding company says the withdrawal will result in a loss of the investment, no greater than $510,000.
The company says it will also write off the investment to date, but any such loss will be recognized in FY17.
Globally, IMF has provided new and additional funding to 30 other investments and 7 other class actions in Australia in FY17 and that reinforces its continued focus on portfolio diversification.
Shares in IMF Bentham Limited (ASX:IMF) are trading over 1 per cent higher to $1.99.