ACA Lawyers is close to finalizing its investigation into a proposed shareholder class action against embattled law firm, Slater and Gordon.
Funding for the investigation 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 has been examining 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 2016, 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.
ACA Lawyers has been investigating this class action for a number of months and has now completed a detailed accounting and legal analysis. ACA Lawyers intends to commence representative proceedings as soon as possible.
The accounting analysis and other investigations have identified that Slater and Gordon’s alleged misconduct is wider in scope than previously thought. Accounting issues have been identified in Slater and Gordon’s financial statements and announcements in the period from 12 August 2014, when Slater and Gordon released its FY2014 full year results, through to 29 February 2016, when Slater and Gordon released its FY2016 half year results. The accounting issues primarily relate to valuation of business acquisitions, revenue and forecast earning