Quindell has notified its shareholders that it is to face a claim worth up to £9 million.
Although the company has not revealed details of the potential claim, it has said that action is being taken by a group under the Financial Services and Markets Act 2000. Back in December of last year, Your Legal Friend said that it was looking at launching a class action against Quindell on behalf of shareholders who has made significant losses by investing in the beleaguered outsourcer.
In a statement, Quindell said that it was “not in a position to verify the assertions in the Notice (as no claim has been received as yet)”.
“The Notice estimates the value of the potential claims against the Company to be a maximum of approximately £9 million before costs (if awarded),” it said.
“There can be no guarantee that other claims will not be made against the Company and, in particular, the claimant firm details that it has been approached, but not retained, by other potential claimants who together, it asserts, would have a claim of a maximum value of a further £9 million.”
“The Notice provides little detail on the potential claim or the timing of the pre-action Letter of Claim and no information to support the valuation of the individual prospective claimants’ claims, which would require to be proved in due course in any litigation. At this stage, the Company will vigorously defend all such claims, as appropriate,” added the statement.
Quindell also said that it was not aware of any other law firms acting for other claimant groups.
Back in December, Colin Gibson, the 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”.