Law firm faces investigation Down Under

AUSTRALIAN stock exchange-listed law firm Slater and Gordon, which employs 3,800 people across offices in the UK including Leeds, Sheffield and Manchester, is facing an investigation Down Under over the possible falsification of financial records.

The Australian Securities and Investments Commission (ASIC) has issued notices to the company asking it to produce documents for the period between December 1 2014 and September 29 2015.

“The ASIC investigation seeks to determine whether those financial records and accounts were deliberately falsified or manipulated and whether the company or any of its officers have committed offences,” Slater and Gordon said in a statement.

“ASIC has stated that these notices should not be construed as an indication by ASIC that a contravention of the law has occurred and nor should they be considered a reflection upon any person or entity.”

Slater and Gordon said it will fully co-operate with ASIC so the investigation can be completed as soon as possible.

In February, ASIC discontinued a review of Slater and Gordon’s financial reports for the 2013/14 and 2014/15 financial years.

The review looked into issues including the recoverable amount of goodwill attributable to Slater and Gordon’s Australian and UK businesses and the recognition of fee revenue and related work-in-progress.

Slater and Gordon made a $1.02bn loss in the 2015/16 financial year, mainly due to massive writedowns in its UK operations following its acquisition of Quindell’s professional services division in March 2015.

 

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