Litigation funders join forces against Slater and Gordon
JustKapital Litigation Partners and Woodsford Litigation Funding have joined forces to fund proceedings against embattled Australian law firm Slater and Gordon.
The funders have agreed to the terms of a conditional funding agreement with ACA Lawyers to prosecute a class action against Slater and Gordon on behalf of shareholders who have suffered losses.
According to JustKapital executive chairman Philip Kapp, that the claim might involve a number of UK-based institutional investors, who have suffered financial losses as a result of Slater and Gordon's alleged misconduct.
The potential claims against Slater and Gordon will stem from statements issued by the company's board of directors in relation to earnings guidance in 2015 and the group's $890m capital raising, as well as its acquisition of the professional services divisions of Quindell last year for around $1.3bn.
Slater and Gordon – which in May 2007 became the first law firm to list on the Australian bourse – has lost nearly 90 per cent of its $2.75bn market value since last April and recorded a net loss of $958.3m for the six months to 31 December. Sources: Yahoo Finance; Australasian Lawyer