In edition 184 of BC Disease News (here), we discussed Slater and Gordon’s intention to issue proceedings, by the end of May, against Watchstone Group PLC, formerly known as Quindell, for £600 million, on the basis that:
‘… but for fraudulent misrepresentation it would not have entered into the transaction at all’.[i]
This transaction, of course, refers to the acquisition of Quindell’s professional services division, which has been the subject of several BC Disease News articles, given significant investment losses of up to 95%, following the deal.
Yesterday, it was announced to the Australian Stock Exchange (ASX), that legal representation has been instructed on behalf of Babscay Pty Ltd, who will become the 3rd firm to commence shareholder action against the publicly listed PI Law Firm.
In an official ASX statement, S&G gave further details about their correspondence with Johnson Winter & Slattery Lawyers (JWS), who will represent the legal interests of Babscay Pty Ltd:
‘While details of the proposed claim have not been provided, the letter from JWS sets out that the claim will be based on allegations that the company’s financial statements in each of the financial years ended 30 June 2013, 2014 and 2015 contained misleading representations’.[ii]
[i] Neil Rose, ‘Slater & Gordon to sue Quindell vendor for £600m over “fraudulent misrepresentation”’ (11 May 2017 Legal Futures) <https://www.lawgazette.co.uk/practice/quindell-owner-waits-on-53m-slater-and-gordon-claim/5060847.article> accessed 8 June 2017.
[ii] Gazette Newsdesk, ‘Slater and Gordon faces third legal battle over shareholder losses’ (8 June 2017 Law Society Gazette) <https://www.lawgazette.co.uk/practice/slater-and-gordon-faces-third-legal-battle-over-shareholder-losses/5061425.article?utm_source=dispatch&utm_medium=email&utm_campaign=%20GAZ141016> accessed 8 June 2017.