Dear Subscriber,

I attach the 12th issue of IMF's newsletter, the Shareholder. It contains articles about some recent shareholder and related regulatory claims, as well as other relevant developments in our industry. In this issue, I am also pleased to inform you of the establishment of an office in New York, to enable IMF to expand its international investment activities and develop a broader range of investment opportunities.

Please click on the links for a full version of each article and do not hesitate to contact us for more information or to apply for funding.

Yours sincerely,

Hugh McLernon
Managing director

ASIC CENTRO WIN BOLSTERS CLASS ACTIONS
In June 2011, the Australian Securities and Investments Commission (ASIC) won its case against the directors and senior management who had led the Centro Group in 2007. The Federal Court held that they had all breached their statutory duties in relation to the final accounts which were published by two Centro entities in that year. In a subsequent decision, penalties were imposed on all of the respondents, including the former Centro Chief Executive Officer and Chief Financial Officer. ASIC's success in the Federal Court has provided important support to current and former Centro investors who are claiming compensation in three class actions being funded by IMF against Centro entities. For a briefing on the decisions and their impact on the Centro class actions, .

DUELLING CLASS ACTIONS SETTLED
Earlier this year, two sets of shareholder claims against Oz Minerals Ltd were settled. Court approval of the settlements were granted on 1 July 2011. The duelling OZ Minerals claim settlements show that similar claims against one respondent can be settled but at greater cost and delay than where one claim proceeds. For more information, .

REGULATION OF THE LITIGATION FUNDING INDUSTRY - TO LICENSE OR NOT TO LICENSE
Recent decisions in superior Courts in Australia have established that litigation funding agreements are financial products and fall under the regulatory provisions of the Corporations Act 2001. Those provisions require that funders hold an appropriate licence and that they comply with the relevant provisions of the Act, put in place to protect investors, clients and the public. However, proposed statutory regulations would have the effect of removing virtually all of the protective mechanisms provided by the Act which currently govern the activity of litigation funders in Australia, including the requirement to hold a licence. IMF opposes the proposed regulations and supports a properly regulated industry. For more details, .

NEW COMMONWEALTH PRE-LITIGATION REQUIREMENTS
The Commonwealth Civil Dispute Resolution Act 2011 came into force on 1 August 2011. The Act requires parties to civil proceedings in the Federal Court of Australia and the Federal Magistrates Court to take genuine steps to resolve or reduce issues in dispute prior to the commencement of proceedings. Recently, the NSW Attorney-General has announced that New South Wales would follow Victoria and postpone the introduction of mandatory pre-litigation requirements. For more information on the new requirements in the Federal Courts, .

CALCULATING LOSS IN SHAREHOLDER CLAIMS
One of the most fertile areas for debate in shareholder claims is in how to calculate loss caused by the contravention. Two options are what are known as the "constant percentage" method and the "constant dollar" method; the former measures "inflation" caused by the contravention as a constant percentage of the company's share price through the relevant period, while the latter measures "inflation" in constant dollar or cents terms. For further explanation of the two approaches, .

NEW YORK OFFICE
In August 2011, IMF announced the establishment of an office in New York which will be operated through a wholly owned subsidiary under the name Bentham Capital. The new venture will be led by one of the most experienced commercial litigation funders in the US, Ralph Sutton. For more information, .

NEWS IN BRIEF
IMF's annual results were announced on 24 August 2011. Please .