The IMF Bentham Ltd (ASX: IMF) share price has had a tough year in 2019, climbing just 15.13% higher since the start of the year.
But the Aussie litigation funder could rise this week after a judgement on its Brisbane Floods Class Action.
Why could the IMF Bentham share price surge higher?
The IMF Bentham share price remains in a trading halt at $3.50 per share this morning. The group requested the halt to allow for a proper response to the Supreme Court of New South Wales’ decision.
IMF is backing the class action run by Maurice Blackburn in relation to the 2011 Brisbane floods, which caused immense damage in Queensland.
On Friday, the Court found flood engineers operating the Wivenhoe and Somerset Dams were negligent. The class action alleged the dam operators didn’t follow a manual that they themselves had drafted.
The court found in their favour, with extensive damages expected to be paid to class action members.
Given IMF Betham receives money from funding these cases, the win could provide a welcome boost for shareholders.
IMF shares have climbed higher this year but remain well short of the S&P/ASX 200 Index (INDEXASX: XJO) in 2019.
The Aussie benchmark index has rocketed 23.18% higher this year and hit a new all-time high last week.
Should you buy IMF Bentham in December?
The class action ruling looks to be a big win for IMF Bentham and its shareholders. However, the trading halt might prevent you from cashing in on IMF Bentham share price gains from the ruling.
IMF Bentham’s 1.41% dividend yield is handy but not the one of the highest on the ASX. Given there haven’t been capital gains this year, I think I’d be waiting to see where the company’s shares land this week.
If you’re looking for yield in December, I’d suggest checking out these top ASX dividend picks for the month.
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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.