A shareholder class action against listed law firm Slater and Gordon is imminent as JustKapital Litigation Partners and Woodsford Litigation Funding announce they’ll team up to fund proceedings.
The two litigation firms have agreed to terms in a funding agreement with ACA Lawyers to prosecute on behalf of shareholders who have suffered losses, according to a report by AAP
But rival law firm Maurice Blackburn
has also flagged plans to file a shareholder class action against the company.
“Shareholders in this case have a pretty clear choice - they can either register with Maurice Blackburn which has recovered more than $2 billion for clients and is clearly the nation's leading class actions law firm, or they can take their chances with another firm that has yet to recover $1 from an Australian class action.” the company said.
Slater and Gordon is working on a restructuring proposal after announcing a $814m write down on UK operations last month, leading to a net loss of $985.3m. The firm, which became the first law firm to list on the ASX in 2007, has lost 90 per cent of its $2.75bn market value following its aquisiton of the professional services divisions of Quindell at around $1.3bn in 2015.
Shareholders are now calling into question statements issued by the company’s board of directors in relation to earnings guidance in 2015, AAP
JustKapital executive chairman Philip Kapp said that the claim may involve UK-bases institutional investors, who have also suffered losses as a result of the company’s alleged misconduct.
Slater and Gordon declined AAP’s request for comment.