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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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