ACA Lawyers has finalised a funding agreement with two leading litigation funding groups to investigate bringing a shareholder class action against embattled law firm, Slater and Gordon.
Funding is being provided by Justkapital Litigation Finance, a listed Australian funder and London based Woodsford Litigation Funding.
ACA Lawyers announced a potential class action against the publically listed law firm on 18 December last year, the first firm to announce possible proceedings.
The investigation will examine statements made by Slater and Gordon at the time of its $890 million capital raising in April 2015 to acquire Quindell plc’s Professional Services Division in the UK and profit forecasting for the 2016 financial year.
On 29 February, Slater and Gordon announced a half year loss of nearly $1 billion including a write down in goodwill of its recently acquired UK business of $814m.
Bruce Clarke, Principal with ACA Lawyers, said investors have many questions about the UK acquisition.
“The directors have a lot of explaining to do. It was only in November shareholders and the market were being told the company was in good shape. Now three months later there are massive losses and write downs.” he said.
“It is not only large institutional investors who have been burnt. Mum and dad investors and the company’s own staff took up shares in the rights issue in reliance on what the company said. It now looks like they have done their money.”
Mr Clarke said that since the announcement of the potential class action against Slater and Gordon ACA Lawyers have been inundated with aggrieved investors, big and small.
“There is real anger among Slater and Gordon investors, from small mum and dad investors to large institutional investors who are looking for some way to recover the millions of dollars that have been lost over the past 10 months,” he said.
Investors who purchased Slater and Gordon shares between 1 April 2015 and 17 December 2015 including those who took up shares in the rights issue can register their interest at www.acalawyers.com.au/slater-gordon or contact ACA Lawyers by email at: email@example.com
Bruce Clarke: +61 419 292 323
Amy Nugent: +61 2 92169800