Slater and Gordon, a firm that is known for bringing mega class actions is now facing at least two class actions of its own. Slater and Gordon have allegedly breached several provisions in the ‘Corporations Act, ASX Listing Rules, the Australian Securities and Investment Commissions Act 2001 and the Australian Consumer Law.’
The share price of Slater and Gordon has fallen 95% and shareholders are not happy. The share price fall followed the purchase of Quindell Pty Ltd, a British firm, which turned out to be massively overvalued.
Shareholders are now questioning whether Slater and Gordons acquisition of Quindell Pty Ltd in April of 2014 was as safe as the company promised. Quindell was purchased by Slater and Gordon with $900 million of capital raising from shareholders.
It is alleged that if Slater and Gordon revelled the truth about the risks associated with the acquisition of Quindell, a company with an extraordinarily shaky reputation, the transaction would not have taken place.
Given the significant number of shareholders that have been affected by the share price drop it is suggested that the shareholder action brought against Slater and Gordon may be the biggest Australia has ever seen, the claim will be in excess of $250 million.
Shareholders are not only disgruntled about their financial loss but they are raising questions about the way in which Slater and Gordon have conducted themselves.
Another law firm, ACA Lawyers is bringing a further class action against Slater and Gordon claiming that they have been investigating Slater of Gordons corporate conduct long before the acquisition of the Quindell.
To read the full article see: https://nswcourts.com.au/articles/australian-law-firm-faces-2-billion-lawsuit/