Your Legal Friend has revealed that it is looking at launching a class action against Quindell on behalf of shareholders who have made significant losses by investing in the beleaguered company.
Colin Gibson, chief operating officer, of Your Legal Friend, said that the firm was very concerned that many shareholders had suffered significant investment losses which may be “directly attributable to statements by the company and its Board that have proved to be extremely misleading”.
“We are actively investigating and advancing plans to launch a class action on behalf of affected shareholders,” he said.
The firm believes that Quindell has made announcements to the AIM market that could be described as “significant mistakes” at the very least. These include publishing misleading financial forecasts; confirmation of progress towards a main market listing followed two days later by an announcement that this had been rejected; an announcement of share purchases by directors which turned out three days later to be share sales; and that the share sales were made in a period after one of the company’s joint brokers had resigned – but before that material fact had been announced to the market – prompting the London Stock Exchange to launch an investigation.
“I urge current and former Quindell shareholders who believe that they may have been affected in this way to contact our legal team as soon as possible,” said Gibson. “Our professional negligence experts are working with currently available evidence to develop a compelling case for action against the company.”
The news comes less than a week after Quinell announced that the broker Swinton Group had signed a multi-year contract renewal with the company.
Steve Chelton, head of claims at Swinton said: “We have enjoyed an excellent working relationship with Quindell over the past two years, providing our customers with an unparalleled service when they most need it following an accident. Quindell continues to exceed expectations in all aspects of their service throughout the supply chain and we look forward to continuing this relationship.”