- Litigation funder Burford Capital moved to stem heavy losses in its share price by rebutting a critical research note about the company issued by US research firm Muddy Waters.

Burford said its cash position and access to liquidity were strong, though it acknowledged it may need to raise more capital in the future.

'Burford will need to take on additional external capital to continue its growth as it has done successfully throughout its history,' it said.

'This is a cause for celebration, not for alarm, because it means the business is growing rapidly.'

Burford said it had a 'wide variety' of capital sources available to it and significant ability to manage its cash outflows, with over $400m of cash and cash equivalents on hand at 5 August.

Burford also said its returns were robust, with its litigation finance returns rising to their highest-ever levels as of 30 June.

It said it used sound and consistent accounting policies, had been audited by Ernst & Young since 2010 with clean audit opinions and used cash-based reporting 'in extraordinary detail'.

Muddy Waters made damaging accusations about Burford's financial strength and operational reputation, describing the company as a 'poor business masquerading as a great one'.

At 1:32pm: [LON:BUR] Burford Capital Ltd share price was -588.75p at 532.25p

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