Major institutional investors from Japan, the US and the UK, as well as locally, have registered with ACA Lawyers to be part of a potential shareholder class action against embattled law firm, Slater and Gordon Limited (SGH).
Bruce Clarke, Principal with ACA Lawyers, said interest from institutional investors, particularly in the UK, has been considerable since ACA Lawyers’ announcement on 17 December 2015 that it was investigating SGH’s recent market announcements.
“We now have many major investors from around the world looking to be part of our proceedings, and the number of potential class action members and the value of the claim is growing every day,” Mr Clarke said.
“This is in addition to major domestic managed superannuation funds that are clearly very concerned about the investments they have made in SGH.”
Mr Clarke said the announcement to the Stock Exchange yesterday that SGH would not be releasing an update on its cash flows this month, as the law firm had previously indicated, is concerning.
“Missing its own self-imposed deadline to provide the market with an update on gross operating cash flow for the first half of the financial year should not provide anyone with any confidence in how the business is travelling,” he said.
“This, coming on top of suggestions SGH is looking to close two offices in the UK, should ring alarm bells for investors.”
SGH shares are down 90 per cent over the past 12 months following scrutiny from regulators and investors over its accounting policies and the $1.3 billion acquisition of Quindell in the UK.
Investors who have purchased SGH shares since April 2015 can register as potential members of the class action by going towww.acalawyers.com.au/slater-gordon/ or emailing ACA Lawyers at email@example.com
Media contact: Craig Allsopp: +61 2 9216 9898