UK 13:57 Monday, 26 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Oh dear, it seems as if the NBF’s of Quindell PLC, the FCA, are now investigating another huge misselling scandal in the legal profession and that as a result of this – and work being done by the SRA – either Quindell PLC or Slater & Gordon could be picking up a bill for £75 million or more. It never rains…
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Comments
DUCK AND DIVE
I think it would be most unusual if the purchase of QLS by S&G did not include a sizeable retention to cover any liabilities relating to the prior owners which may surface during the year/s after the transaction.
Claims Specialist
Tom
You may want to investigate how the £425 income was split as since April 2013 law firms have been banned from taking commissions from ATE providers.
If your investigations were to evidence a commission of say £200 going to QLS or a related party then this would be a serious regulatory issue for both the ATE provider and the law firm.
Jeremy
I understand as part of the transaction with S&G Quindell PLC had to keep £50m of the proceeds in escrow for 18 months so obviously warranties were given whether to cover this matter remains to be seen.
alcira16247
Tom
I think its starting to become self evident that Slater & Gordon’s boasts of adequately performing “a very extensive due diligence process”, at QLS are starting to leave a lot to be desired as yet another potentially disastrous situation arises.
Already many Slater & Gordon shareholders must be ruing the day they ever heard the name Quindell! Andrew Grech, S&G’s Aussie Managing Director boasting that purchasing QLS represented “a deal of a lifetime” is starting to sound very hollow. Another candidate for falling on his sword, in my opinion!
With this new scandal beginning to break, looks as if Quindell’s beleaguered shareholder’s might be having to put that new car order or foreign holiday booking onto the back burner, as the ring fenced £50 million is looking increasingly inadequate, in wake of an ever growing list of liabilities!
MisterSteady
Not sure if already seen but…
http://www.axaconnect.co.uk/news/2015/axa-has-successfully-defended-a-compensation-claim-for-noise-induced-hearing-loss-(nihl)/
drake
There are some very relevant comments on the (not so big) scale of the above ATE issue in the comments under this article in case anyone cares to look:
www.shareprophets.com/views/13520/slater-gordon-update-as-hopefully-warning-was-heeded-it-is-going-to-get-worse