Slater & Gordon to sue over Quindell purchase

AUSTRALIAN law firm Slater & Gordon is to take legal action against the company that sold its UK professional services business to the firm in 2015.

Slater & Gordon has said it is to sue Watchstone Group, previously called Quindell, following the disasterous acquisition which almost sent the law firm under last year.

A successful claim would see £50m of the incredible £673m it paid for Quindell’s professional services business returned to Slater & Gordon.

Watchstone was forced to restate its accounts for its 2013 year, which led to it booking a £64m loss for the year when it had previously reported a £107m profit, and is currently under investigation by the Serious Fraud Office for its accounting treatments of work in progress.

Slater & Gordon recorded a £879.5m impairment in the year to June 30, when it wrote down the majority of the value of its UK business following the troubles with Quindell’s accounting and regulatory changes.

In May, the writedown and the restated accounts led to Slater and Gordon entering into emergency discussions with its bankers to refinance its debt.

In response to the claim, Watchstone said: “The company does not believe that there are grounds for a claim to be brought and will defend it robustly.

“Watchstone conducted a professional and transparent disposal process of the Professional Services Division assisted and advised by leading specialists.

“In addition, Watchstone allowed SGH the opportunity to complete an extensive and detailed due diligence process with the assistance and advice of a similarly specialist team.”

Slater & Gordon employs 3,800 people across offices in the UK, including Manchester, Liverpool, Preston, and Chester.