The resolution followed thousands of shareholders, headed by investor Matt Hall, taking the action against the law firm seeking compensation for a massive drop in the business’ value after a $1.3 billion buyout of a British professional services business back in 2015. Law firm Maurice Blackburn acted for the shareholders. Slater and Gordon has issued a statement saying: ‘The conditional in-principle settlement will ... resolve any and all potential shareholder claims against the company and its directors and officers’ but includes no admission of liability.
Managing director Andrew Grech has since stepped down from his leadership role although he currently still sits on the company board and it is expected that other directors will follow suit to allow for a major restucturing at the firm. In the meantime a replacement board will be appointed by the new lenders of which majority debt holder is Anchorage Capital.