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Just a bit more bad news for Slater & Gordon...

By Tom Winnifrith | Friday 11 March 2016


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, can life get any worse for Aussie poltroons Slater & Gordon (SGH)? Er yes of course it can. And in fact it just has...

Shares in the Aussie poltroon insurance company have bounced from an all time low of 26 cents to 34 cents and so are now only 95% down from the Quenron peak of last year. The company is still burning cash and set to breach bank covenants and go bust by Q3. So can there be any more bad news?

Oh dear. It seems that the first ‘fundamental dishonesty’ ruling has been made on a noise induced hearing loss (NIHL) claim, with insurer Allianz recovering costs as a result, according to an article carried by Post magazine.

Allianz investigations revealed that contrary to the claimant’s allegations, he had been supplied with protective equipment throughout his employment. His Honour Judge Gregory ruled on appeal that the ‘fundamental dishonesty’ test had been met.

Stephen Croston, at law firm Keoghs which represented Allianz, said: "This is an important decision for the market, providing much needed guidance in an emerging area of the law."

Methinks this is going to mean a good number of claimants dropping out of the S&G pipeline and it rather sets a precedent for a few cases already underway. In the case noted above the claimant will undoubtedly be acting on a no win no fee basis so good luck to his ambulance chasing lawyer (wonder who it was?) in sorting out who pays Allianz.

This is perhaps just a small thing for S&G. On its own it would just shrink earnings a tiny bit. But since the company is already 100% fucked what more damage can be inflicted?

The shares remain a sell - target price 0 cents.


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More on SGH


Comments

8 comments


  1. Drunken Sailor

    With a 400% market share in the NIHL scam there must be a high probability that it is an SGH client. RT did not give a shit, he bought up cases from call centres who would not have given a shit either. A hearing test is easy to fake as only you know whether you can hear the noise or not. You do need to know how to fake it properly though. Maybe the call centres, who were making a bomb out of RT, even explained which frequencies NIHL affected. They would have been sure to emphasise that the claim would only succeed if they said their employer never provided hearing protection. As RT was merrily booking bogus revenues and profits to issued more shares to mug punters he would not care. Those 70 lawyers who reviewed all those case files in the best due diligence ever clearly did a great job too.

    It would have been better if the judge had turned round to the lying shit and tied him for perjury – that would have really had other bogus claimants running for the door.


  2. filthy lucre

    Very old news Tom. Try to keep up. This was reported weeks
    ago, and involved ‘fundamental dishonesty’ by the claimant.
    As far as I am aware, this was not a Slater and Gordon case, and would
    not have been pursued by them.
    This is just another Winnifrith smear, I am afraid.

  3. FL

    If you cant see the read across to S& you are either very stupid or just can’t see properly as you still have Rob Terry’s cock wedged firmly in your mouth as you have for most of the past 3 years. Or perhaps its both

    T

  4. FL

    The sad truth is that when it comes to anything related however remotely to the fraudster Rob Terry, Filthy will still swallow anything

    t

  5. Just a note on the hearing issue that Drunken sailor mentioned, hearing tests cannot be faked, im in the industry (in a way) a special device (wish the bloke who invented it was on aim in the early days) used world wide now, called the AOAE test, which detects the inner ears hair movement during the procedure, faking it is impossible.


  6. Drunken Sailor

    Mark,

    I have had a number of hearing tests, as I have a problem with my left ear. It does show up in the sort of frequencies involved with NIHL, but I am not suing my employer – it does not really impact my life, but does drive my wife up the wall when she is to the left of me and I am watching TV. I try to pick a seat at meetings that will favour my right ear. I hold the phone to my right ear and being right handed need to adopt a rather cack handed pose to be able to write down anything whilst on the phone. Ultimately I will have to get a hearing aid, which is no real hardship and I don’t know why I am putting it off, other than not hearing the wife’s nagging can be a blessing.

    In none of the hearing tests I have had has the device you have mentioned been used. Could you provide a bit more detail on it? Drop me a line at drunken.sailor1@hotmail.com

  7. Not relevant to the Budget
    Latest updates from BGL group, watch out Slater and Gordon!
    “The company says the fall in profits is largely due to a £35 million loss in Minster Law, which it acquired three years ago. It says a change in the law on personal injury claims has seen a cut in profit margins.”

  8. Still not received my compo after being told weeks ago they received check they can’t be doing fraud again could they???


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