Litigation investing – a route to riches (sometimes)

The first major investment I made in the 1990s was a litigation stock. It was controversial enough that I've never written about it before.

Ever since, I have kept an eye on this complex niche of the market.

Join me for a stroll through some of the names that make up this sector today – along with a few historical cases worth learning from.

Investing in Nazi-era claims during the 1990s

When I first started investing, the Berlin Wall had just come down.

Few will remember that the German stock market featured companies with massive unresolved claims dating back to the Second World War.

Most prominent (and infamous) among them was IG Farbenindustrie ("IG Farben"), the German chemical and pharmaceutical conglomerate. Formed in 1925, it became Europe's largest company and a global leader in chemistry and pharmaceuticals. Its scientists won Nobel prizes. It also became synonymous with war crimes, including supplying Zyklon B gas.

After the war, the Allies seized the company. Its directors were tried in Nuremberg and 13 were convicted. IG Farben was later broken up into smaller entities such as BASF, Bayer, and Hoechst.

However, certain legal claims remained – including ownership of 151m square meters of land and industrial facilities in East Germany. These had been expropriated by the Soviets. The shell of the former holding company was put into liquidation but remained listed.

Hardly anyone paid any attention until 9 November 1989.

When the Berlin Wall fell, investors rediscovered compensation claims for expropriated assets. The listed securities – technically "claims to liquidation proceeds" (= "Liquidationsscheine") soared from DM 1.50 (deutschmarks) to as high as DM 30.

These securities became widely followed in Germany. A daily television programme displayed their price. Investment publications covered them extensively.

As a 15-year-old amateur investor, I joined the speculation.

The Frankfurt exchange had similar entities, including Commerzbank Restquoten, another shell created to preserve legacy compensation claims.

During the 1990s, German investment publisher Bolko Hoffmann amassed a 48% stake in this Commerzbank-linked vehicle. He argued it was owed not only compensation for East German assets but also royalty payments for use of the Commerzbank brand.

The price rallied by over 200x (!), from DM 2 to as high as DM 435. The affair generated intense media attention.

Another example was A. Riebeck'sche Montanwerke, a former coal and synthetic fuel producer with expropriated assets and complex legal claims involving IG Farben successor companies.

The ultimate outcomes were mostly disappointing.

None of these companies received compensation for East German assets. Politics overruled what appeared legally valid.

This was an early lesson: never assume you can reliably judge the validity of a legal claim. As the old German saying goes: "On high seas and in courts of law, you are in God's hands."

Nevertheless, I made money.

I bought Riebeck shares at DM 16 and sold around DM 80 when litigation developments pushed the stock back into public focus. The company ultimately lost its case and was struck off in 1998.

Commerzbank Restquoten I watched from the sidelines after missing a cheap entry. Hoffmann died before the case concluded. His heirs later settled at EUR 10 per Restquote – about DM 20, or 10x the initial price. Respectable, but far below the euphoric expectations when shares traded at DM 435.

IG Farben itself proved both failure and indirect success. The liquidation failed. After unsuccessful compensation attempts and additional legal liabilities, the rump entered insolvency in 2003 and was struck off in 2015. Investors received nothing.

However, several spin-offs performed extremely well. In the 1990s, IG Farben was controlled by Karl Ehlerding, the genius German investor with whom I conducted an exclusive interview in 2022 for his 80^th birthday. Ehlerding and his partners were among Germany's most skilled dealmakers, exploiting tax structures, restructuring listed shells, and testing the boundaries of acting-in-concert rules. As a young investor occasionally exposed to this circle, I invested in affiliate companies – and those gains more than offset IG Farben's failure.

Watching these situations up close sparked a lasting interest in stocks others had written off but which still harboured overlooked legal claims.

I probably wouldn't invest in Nazi-era claims today, but less controversial legal claims are plentiful.

What does the sector look like today?

"Litigation investing" isn't a clearly defined category. There is no precise line where "normal investing" ends and "litigation investing" begins.

Often, these situations involve unclear ownership rights, arbitration claims or political disputes rather than straightforward court battles. What they have in common is complexity and neglect.

An early example was Petrel Resources (ISIN IE0001340177, UK:PET), a tiny London-listed entity with legal claims to oil fields in Iraq. Regime change and war complicated matters. I wrote about the stock in 2002 when no one else dared to touch the subject (yet). The share price rose from 3 pence to 162 pence as speculation intensified (see my 6 March 2020 Weekly Dispatch "Riches among ruins: my 5,000% investment adventure in war-torn Iraq").

Bougainville Copper (ISIN PG0008526520, AU:BOC) was similar. The company held disputed rights to a copper deposit in a war-torn jurisdiction. I first wrote about it in late 2003 at AUD 0.23. Four years later, it traded at AUD 1.75 amid renewed reopening hopes. Since then, it has experienced repeated cycles of neglect and renewed hope.

Bougainville Copper.

These cases can take years – sometimes decades – to unravel. Resolution is not required to generate returns. You can make money by playing the recurring ups and downs each time a new milestone is reached or a new wave of speculation sets in.

My #1 learning from decades in this sector is simple: "The journey is often more important valuable than the destination."

How to approach this as an investor

When researching litigation claims, it's tempting to act like an amateur lawyer.

Don't.

Even lawyers struggle to predict trial outcomes. Investors do not need to forecast verdicts – they need to understand how probabilities evolve.

Litigation-driven stocks typically re-rate in stages as milestones are reached.

For example, a compensation claim might:

• Trade at a miniscule 1% of the claim value early on.
• Move to 2-5% once litigation funding is secured and proceedings advance.
• Reach 15-20% if the arbitration process progresses favourably.

The point is, the share price moves with the progress of the legal case.

An investor might want to pursue a gradual de-risking strategy:

• Buy into a claim at 5% of its value.
• Recoup the principal capital after an initial doubling.
• Further reduce exposure ahead of a major decision.

These are illustrative examples, not rigid rules. The principle is to manage risk as a case matures rather than rely entirely on the final verdict.

I have seen this pattern repeat consistently since the 1990s.

Where can you find these opportunities today?

20+ current examples of litigation investments

Venezuela has long been a familiar name to anyone exploring legal-claim investing. I covered the subject in my 26 August 2022 Weekly Dispatch "Venezuela – a multi-bagger recovery play?". One prominent example was micro-cap Rusoro Mining (ISIN CA7822271028, CA:RML), a former gold miner whose assets were expropriated by the Venezuelan government. Many readers bought small stakes, calculating that even modest positions could yield a tidy profit if the case succeeded. Within just two years, the stock had risen 22-fold (!). Liquidity remained limited, and the legal situation grew ever more complex, but early investors saw spectacular returns long before the dispute reached a resolution.

Rusoro Mining.

Gold Reserve (ISIN BMG4R86G1074, CA:GRZ), another former Venezuelan miner whose legal claims overlap with Rusoro Mining's, is a closely related case. In March 2023, I published an in-depth 38-page research report for Undervalued-Shares.com Lifetime Members. With solid cash reserves and better trading liquidity than Rusoro Mining, the stock surged from CAD 1.49 to CAD 5.60. Its volatility remains extreme, as does its risk/reward profile.

Gold Reserve.

GCM Resources (ISIN GB00B00KV284, UK:GCM) demonstrates a similar dynamic in a different sector. This company owns a massive coal reserve in Bangladesh, containing coal worth between USD 50bn-100bn, yet its market cap is a mere GBP 30m (USD 40m). While the firm was never formally expropriated, it has been unable to advance its plans for years. Once a London Stock Exchange highflyer, GCM Resources peaked at GBP 2bn in the mid-2000s before plummeting to just GBP 2m in early 2025.

When I first featured it in April 2020 on Undervalued-Shares.com, it was trading at 9.5 pence, and it soon collapsed to a low of 1 pence. Many of my readers took the opportunity to double down, buying between 1-4 pence. The stock has since rebounded to 12 pence, and if the company can reach an agreement with the Bangladeshi authorities, the speculative upside remains tremendous. But yes, this stock remains WILDLY volatile.

GCM Resources.

Rockhopper Petroleum (ISIN GB00B0FVQX23, UK:RKH) was another forgotten resource play. This Falkland Islands oil company held a large compensation claim against Italy, pursued through international arbitration. When I first highlighted the stock in an October 2022 research report for Undervalued-Shares.com Lifetime Members, it was out-of-favour and largely ignored. The successful legal claim brought a cash influx, helping revive the company's oil project. Since then, the stock has risen 5x and still shows potential upside.

Rockhopper Petroleum.

Northern Dynasty Minerals (ISIN CA66510M2040, NYSE:NAK) owns a huge, controversial copper deposit in Alaska, which has been tied up in legal challenges for years. When I covered the stock in an in-depth research report in February 2023, it traded at just USD 0.22. It has since climbed tenfold. The company could see further gains if the legal and political environment shifts in its favour – but the litigation remains complex and ongoing.

Northern Dynasty Minerals.

Raiffeisenbank International (ISIN AT0000606306, VIE:RBI) has been caught up in legal and geopolitical complications related to its Russian subsidiary. I explained the background story to Undervalued-Shares.com Lifetime Members in November 2023 when the stock was trading at under EUR 14. By June 2025, when my Weekly Dispatch "The craziest (unknown) European banking stock" summarised the situation, the stock had already advanced to EUR 27. It now trades at EUR 44, with potential to reach at least EUR 65. Roemer Capital published an initiation report on the stock last week; anyone wishing to receive a copy, get in touch.

Raiffeisenbank International.

JP Morgan Emerging Europe, Middle East & Africa Securities PLC (ISIN GB0032164732, UK:JEMA) is a closed-ended fund holding frozen Russian ADRs and GDRs and cash in so-called S-accounts. However,  a Russian bank is also pursuing claims against the fund. When "JEMA" was first presented at the 2024 Weird Shit Investing conference, the share price was 110 pence; it has since risen to 300 pence. Controversial and complex, it is probably THE most widely known proxy for buying into Russian assets through the London Stock Exchange. Access can be tricky due to brokerage restrictions on Russian-related securities, but the legal claims themselves remain valid. Investing in legal claims often has its own set of challenges, if you dare to look at sanctioned assets and other extreme situations.

JP Morgan Emerging Europe, Middle East & Africa Securities PLC.

CairoMezz (ISIN CY0109232112, AT:CAIROMEZ) is a Cyprus-based, Greek-listed entity holding non-performing loans from Greece's sovereign debt crisis. Its complex structure and legal claims make it a unique litigation investment opportunity, as outlined in the free 2024 Weird Shit Investing Manual.

Solidcore (ISIN JE00B6T5S470, KZ:CORE), formerly Polymetal, restructured due to sanctions against Russia, relocating its non-Russian operations to Cyprus and listing on the Kazakhstan stock exchange. The stock is up 164%, since it was highlighted at the 2024 New York edition of the Weird Shit Investing conference. Despite the higher share price, the stock remains undervalued at a time when gold is near USD 5,000 per ounce.

Ferrexpo (ISIN GB00B1XH2C03, UK:FXPO) is another complex legal situation presented at the Weird Shit Investing conference. The Ukrainian company is embroiled in a legal and political dispute between its France-based Ukrainian oligarch owner and the Ukrainian government under President Zelensky. Resolution could multiply the stock's value fivefold (see also my in-depth research report "Ukraine reconstruction multibagger" for Undervalued-Shares.com Lifetime Members).

Ferrexpo.

Litigation investing wouldn't be complete without Cuba. In 2020, I published what's probably still THE most thorough research report on Cuban claims. Liquidity is tricky – some publicly listed claims, like CDR notes on the Channel Islands exchange, barely trade. A more accessible option is CEIBA Investments (ISIN GG00BFMDJH11, UK:CBA), a London-listed real estate fund for Cuban assets. Largely forgotten until I highlighted it at the 2025 Weird Shit Investing conference in London, it's now back in focus, especially with renewed US interest in regime change. Full details are in the 25 June 2025 Weekly Dispatch "How to buy into the world's cheapest real estate".

CEIBA Investments.

These examples illustrate once again that there is no clear line between "normal investing" and "litigation investing". The opportunities often straddle multiple sectors, and geopolitics frequently plays a major role.

Defaulted or disputed sovereign debt appears regularly in this space. The particularly high-profile case of Venezuela will also be covered at the Litigation Investing online conference on 25 February 2026 – a timely discussion given the recent removal of Maduro and the prospect of meaningful change.

Previously, I reported extensively on defaulted Lebanese debt (see the 24 February 2023 Weekly Dispatch "Lebanon's distressed debt opportunity" for details). Lebanon had defaulted on a staggering USD 150bn, yet these bonds were easy to trade in large quantities, often around 7% of the outstanding principal. Few investors were paying attention at the time. Those who acted, however – such as one regular attendee at my London dinners – have seen prices rally to 20-24% thanks to ongoing restructuring efforts.

Another peculiar – and spectacular – defaulted debt situation is Signature Bank (ISIN US82669G1040, OTC Expert Market: SBNY). The American bank was caught in the crypto-sector turmoil and forced into insolvency. A New York-based distressed debt hedge fund conducted forensic work on the remaining assets and concluded that the "worthless" stock might still carry value. The market eventually caught on: the stock surged from 1 cent to USD 3.60 in just seven months – a 36,000% move. I covered the case on 19 April 2024 under the headline "Signature Bank – why the 36,000% rise in 7 months?". The stock has since pulled back.

Geopolitics has increasingly shaped these opportunities. One case I shared with Undervalued-Shares.com Lifetime Members is that of Energy Transition Minerals (ISIN AU0000250250, AU:ETM). This Australian company, formerly Greenland Minerals & Energy, owns the Kvanefjeld project in Greenland – the world's second-largest rare earth deposit and sixth-largest uranium deposit. By 2020, Energy Transition Minerals was ready to go into production, only for Greenland's newly elected left-wing government to reverse a 2013 law, specifically blocking Kvanefjeld.

Energy Transition Minerals responded with international arbitration against Greenland and Denmark, claiming USD 11.5bn in damages – four times Greenland's GDP. The project was meant to be a cornerstone of Greenland's economic independence, yet now it has become a potential death knell for the territory’s ambitions.

I published my report "100x if Trump buys Greenland?" in early 2025 when the stock traded at 4 cent. It spiked to 21 cent and now trades at 11.5 cent. My view is that the story isn't over: additional volatility and hype are likely, and the company is exploring a Nasdaq listing to appeal to US investors.

Energy Transition Minerals.

Energy Transition Minerals was also highlighted in my 2 May 2025 Weekly Dispatch "10 litigation finance cases from around the world". The following section provides a concise update on those cases and the current research landscape:

Equatorial Resources (ISIN AU000000EQX3, AU:EQX) raised capital to explore iron ore in the Republic of Congo but was unlawfully expropriated. Compensation claims range from USD 395m to USD 1.25bn, compared to a market cap of just AUD 27m (USD 20m), based on 132m shares outstanding.

Equatorial Resources.

The stock has doubled since I first reported on it. Collecting from a recalcitrant sovereign can be complex, but cases like Cairn Energy's successful USD 1.25bn arbitration against India show it is possible. A European investor with deep knowledge of the Equatorial Resources case will discuss the stock at the Litigation Investing online conference on 25 February 2026. To learn more ahead of the conference and prepare for the Q&A session with the presenter, read up on the case details in this September 2025 article by TripleS Special Situations Investing. For background on why mining disputes so often create compelling opportunities, see the article linked below.

Source: Crux Investor, 24 July 2025.

Silver Bull Resources (ISIN US8274582092, CA:SVB) owns the Sierra Mojada silver project in Mexico, blocked illegally since 2019. After failed negotiations with the Mexican government, Silver Bull Resources filed a claim with the International Centre for Settlement of Investment Disputes, seeking USD 408m. The stock has doubled since my initial coverage, yet the market cap remains just USD 11m.

Silver Bull Resources.

Emmerson (ISIN IM00BDHDTX83, UK:EML), a London-listed potash developer turned litigation play, ran into environmental permit issues in Morocco, despite a sound project that ticked many of the right boxes: lower quartile price economics, experienced management team, further exploration upside, and a strategic location.

The share price has been flat since I first covered it, but that could change. The company is preparing to file its case memorial, including a large claim that could potentially run into the billions. At the upcoming Litigation Investing online conference, a deeply knowledgeable investor will discuss the stock in detail. For further research, Polish investor Marcin Michalek has published an 80-page, highly detailed dossier on Emmerson. It not only covers the case itself but also provides broader insights into similar litigation opportunities. The report is freely accessible. Regular updates are also available via Marcin's X account. (Marcin is also the #1 expert for GreenX (ISIN AU0000198939, UK:GRX), a company that successfully sued Poland and now appears to be on the cusp of collecting its award.)

Emmerson.

Montero Mining & Exploration (ISIN CA6126483032, CA:MON) is a "done & dusted" case. Tanzania compensated the company for prior expropriation, and it has since pursued new ventures. Montero Mining became another textbook exemple of a company securing compensation and then using that outcome for a renewed lease of life – creating further uplift for shareholders, much like Rockhopper Exploration.

Montero Mining & Exploration.

ParkerVision (ISIN US7013543001, OTC:PRKR) differs in that it is a US-court case rather than international arbitration. The company sued Qualcomm (ISIN US7475251036, NYSE:QCOM), for allegedly stealing patented wireless receiver technology, claiming USD 2.6bn.

The Supreme Court dismissed a petition in spring 2025, yet other legal challenges remain. Plenty of research material exists online (such as these two short company videos here and here).

ParkerVision.

Sarama Resources (ISIN CA8031604074, CA:SWA, AX:SRR) had ~3M oz of gold expropriated in Burkina Faso and launched arbitration proceedings under the Canada/Burkina Faso bilateral investment treaty. Following my Weekly Dispatch, I haven't found any further research on the stock. However, given that the company secured litigation funding, it could be worth spending some time on. An outside investor funding a legal case is always a sign that a claim should be taken seriously. Anyone looking to dig deeper into the case could do far worse than start with Kingfish Capital's 31 July 2025 article.

Zenith Energy (ISIN CA98936C8584, UK:ZEN) demonstrated the value of de-risking litigation-related investments as a case progresses. After claiming damage for expropriated Tunisian oil assets, the stock rallied from 1.5 pence to 17 pence. It then collapsed 80% on 17 July 2025, when Zenith Energy reported it lost one of its arbitration cases. Claiming foul play, the company is working towards an annulment of the ruling. Swedish research platform Analyst Group has published an opinion on those efforts. Meanwhile, a second – and larger – arbitration claim remains active. That USD 570m case is scheduled for a hearing in April 2026. Legal Special Situations published a paywalled update in December 2025.

Zenith Energy.

Almaden Minerals (ISIN CA0202833053, CA:AMM) secured USD 9.5m in litigation funding for arbitration against Mexico under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership ("CPTPP"). The share has gained some ground since my article, and it will be discussed in detail at the upcoming Litigation Investing online conference. My sense is that this one is worth watching closely. In the meantime, a May 2025 article by TripleS Special Situations Investing remains the go-to resource.

Last but far from least, Panthera Resources (ISIN GB00BD2B4L05, UK:PAT). The London-listed company is pursuing a nine-figure claim against India for the unlawful expropriation of its gold resource. I first reported on the stock at 10 pence; it has since traded as high as 26 pence and currently hovers around 20 pence. For detailed background, see my two previous articles (here and here) or the summary in the 2025 Weird Shit Investing Manual(from page 155). It's probably the most widely held litigation stock among my readers, and could return 10x-50x if the arbitration panel rules in the company's favour and India ultimately pays (as it has done in other arbitration cases).

What happens next?

Following several advantageous procedural decisions for the claimant, the arbitration timeline has been significantly shortened. Throughout 2026, a series of key milestones will unfold, starting with a major procedural step in late February (see following table). This makes Panthera Resources a prime example of what I described earlier as "investing in the journey".

Source: Panthera Resources, 29 October 2025.

The market may also begin to recognise that Panthera Resources represents an indirect, smart way to play the gold price. In May 2025, the company stated that its claim amounts to USD 1.38bn post-tax (or more than USD 2bn pre-tax). This figure is widely misunderstood as fixed. It is not. Since that publication, gold has risen from USD 3,100 to around USD 5,000. The arbitration panel will need to consider the prevailing gold price when determining compensation – the gold price increase may not yet be fully reflected in the share price. A Cambridge-based resource investor with a significant stake in the company has previously highlighted this dynamic, but the concept still remains widely misunderstood.

Source: Mark Thompson X account.

How exactly would a higher gold price feed through into compensation calculations? Mark Bolton, Panthera Resources' Managing Director, will speak at the upcoming Litigation Investing conference. He will no doubt face detailed questions on this topic – though how much he can legally disclose remains to be seen. For those wanting to prepare in advance for the live Q&A, I recommend the following reports published by VSA Capital (available on Research-Tree):

• 9 December 2024: "Arbitration: The Gold Standard for Dispute Resolution"
• 10 January 2025: "Update about key aspects of the process"
• 20 May 2025: "Statement of Claim"
• 29 October 2025: "Arbitration Timetable Confirmed"

As VSA Capital noted in its most recent update, the stock is currently trading at around 4% of the stated claim value – and at an even lower percentage if a higher gold price results in an upward adjustment to the claim. Adhering to the concept of a litigation investment's "journey", VSA's base-case expectation is that the stock could next move toward 80 pence, implying 4x upside from current levels.

For yet another perspective, see TripleS Special Situations Investing, whose author once described Panthera Resources as their highest-conviction arbitration case.

Panthera Resources.

Learn more on 25 February 2026

My first-ever online conference dives deep into litigation investing. It takes place on 25 February from 10:00-17:30 EST (15:00-22:30 GMT). Can't make it live? Buy the ticket and watch the recordings anytime.

The agenda covers the sector from multiple angles. Many disputes originate in mining, and global mining-law expert Emma Beatty will explain how arbitration cases actually work. After all, the entire event aims to be educational, alongside offering specific investment ideas.

I'll also present one case myself. This article grew out of preparing that presentation and serves as a roadmap for anyone who wants to explore this niche further.

Nearly 250 participants have already registered, which shows the appetite for this topic.

Most cases will be presented by independent investors – not company executives. That's a key difference to other events. And all featured situations involve publicly listed securities that anyone can buy and sell through a normal brokerage account.

Of course, these opportunities aren't for everyone. That's precisely why they are so appealing.

If there's one lesson I've learned over 20 years in this space, it's this: focus on "investing in the journey". Rather than become too fixated on the legal details, de-risk positions as cases progress and mature.

That mindset makes all the difference.

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