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03 March 2016

Slater & Gordon shareholder class action gets backing from UK funder

London-based Woodsford Litigation Funding is underwriting a class action lawsuit brought by Australian firm ACA Lawyers on behalf of Slater & Gordon shareholders, as the listed firm's stock hits record lows.

By Kathryn Higgins

Lane Erickson

ACA Lawyers has reportedly finalised a funding agreement with both Woodsfords and Australian funder Justkapital Litigation Finance after embattled Australia-listed firm Slater & Gordon unveiled a staggering £493m loss for the six months to December 31 on Monday. The ACA class action represents shareholders who bought Slater & Gordon stock between April 1 and December 17 last year, when ACA announced its examination of statements made by the firm around capital raising for its acquisition of Quindell PLC and its profit forecasting for 2016. A massive writedown of goodwill in relation to the acquisition was largely responsible for the listed firm's catastrophic half-year losses. After debuting 11 months ago at AUS$8 per share and starting this week trading at only 83c per unit, Slater & Gordon's stock closed trade yesterday at just 26c per unit—its lowest ever value.

'Real anger'

ACA Lawyers principal Bruce Clarke argues that Slater & Gordon management has 'a lot to answer for'. The firm's class action, which is one of two, has reportedly been 'inundated' by inquiries from investors who have lost out in Slater & Gordon's downward spiral. 'There is real anger among Slater & Gordon investors, from small mum and dad investors to large institutional investors who are looking for some way to recover millions of dollars that have been lost over the last 10 months,' he said. Source: Legal Futures

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