SLATER AND GORDON STILL CHASING PORTION OF LOST UK MONEY
Written on the 30 November 2016 by James Perkins
THE £50 million that Slater and Gordon (ASX:SGH) is trying to claw back from the disastrous deal with Watchstone Group last year remains in escrow, the company announced today.
A determination on who gets the amount, worth AU$83.43, hinges on the result of a legal claim made by Slater and Gordon.
Slater and Gordon posted a full-year loss of $1.017 billion a result of the UK acquisition of Quindell (now Watchstone Group), which was quickly made almost worthless after changes to UK legislation not long after the deal was done.
The Melbourne-based law firm is the subject of a class action over the deal to acquire Quindell, alleging that the company did not keep shareholders adequately informed.
The company's shareholders revolted over executive pay at its recent AGM, recording a first strike against the company.
Slater and Gordon is also suing the advisor behind its failed deal with Quindell in an effort to regain $86 million.
The company is trading up 4.84 per cent at $0.325 per share this morning. On April 2, 2015, the company was trading at $7.85, but the company's market cap has quickly fallen off a cliff since then.