SHARES of the Melbourne-based law firm Slater & Gordon dropped more than 20 per cent yesterday in the company’s biggest ever one-day loss.
The slump came after the Financial Conduct Authority (FCA) said that it was probing Quindell, a UK-based insurance claims handler.
Slater & Gordon bought most of Quindell’s business in May for £637m. The FCA said earlier this week that Quindell’s accounting policies were “at the aggressive end of acceptable practice”.
Quindell first came under scrutiny last year after New York short seller Gotham City Research published a report making serious accusations over its finances.
Slater & Gordon said in a statement yesterday that it was confident it had no liability in relation to the FCA investigation.
But that did not stop the firm’s shares from tanking. The share price slumped by 23 per cent before closing at A$5.06 (£2.49), down nearly 17.5 per cent.