London Capital Group Holdings PLC Settlement of legal proceedings (3944S)

TIDMLCG

RNS Number : 3944S

London Capital Group Holdings PLC

06 November 2013

London Capital Group Holdings plc

("LCG" or the "Company")

Settlement of legal proceedings

The Board is pleased to announce that it has settled the legal proceedings in relation to the claim served against its subsidiary, London Capital Group Limited (the "Claim). The Claim was brought in relation to the termination of a fee sharing agreement with Life Settlement Consulting Limited ("Integrity"), the company that introduced clients to the managed FX fund that subsequently led to the Financial Ombudsman complaints.

As a result of the settlement, all claims and allegations brought by Integrity against LCG concerning the operation and termination of the managed FX fund (operational March 2009 to December 2009) have been withdrawn. LCG has agreed to pay Integrity the sum of GBP350,000 representing a contribution to legal expenses, which will be treated as an exceptional expense.

Kevin Ashby, CEO, London Capital Group plc, said:

"LCG has always maintained that the claim was without merit and I am therefore pleased that Integrity has withdrawn all claims. We have agreed to make a contribution towards Integrity's costs as part of the settlement which avoids further legal costs should the case have continued to a final judgement."

For further information, please contact: www.londoncapitalgroup.com

London Capital Group Holdings plc

Kevin Ashby, Chief Executive Officer

020 7456 7000

Cenkos Securities plc

Nicholas Wells/Camilla Hume

020 7397 8900

Smithfield Consultants

John Kiely

020 7360 4900

Notes to Editors:

London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a financial services company offering online trading services.

London Capital Group Limited (LCG Ltd), a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Conduct Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other divisions provide online foreign exchange trading services to institutional and professional clients and also institutional derivatives broking. LCG Ltd is one of the leading providers of white label financial spread trading and CFD platforms and its white label partners include TD Direct Investing, Bwin.party, and Saxo Bank.

LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships.

LCGH plc is listed on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.

This information is provided by RNS

The company news service from the London Stock Exchange

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