Quindell's share price falls as it receives a pre-action legal letter and the claimants want £9m in damages

Catherine Neilan
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Quindell is facing a number of headaches, including an ongoing investigation by the SFO (Source: Getty)

As if things couldn't get any worse for Quindell, the business this morning says it has received "notice of intended claim" from a group suggesting it is planning to bring a lawsuit against the troubled insurance outsourcer, with damages of £9m.

The law firm is not named and the claims are not detailed, other than the action would be brought under the Financial Services and Markets Act 2000.

"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," Quindell said. "At this stage, the company will vigorously defend all such claims, as appropriate."

Although there is limited information, investors are already getting the jitters: Quindell's share price opened 2.4 per cent down this morning.

The statement added: "Whilst the company is 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 £9m before costs (if awarded)."

"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 £9m."

Quindell said it was not aware of any other law firm acting for claimants or in the process of producing a claim.

Another headache to add to the pile of problems the firm faces, including an ongoing investigation by the Serious Fraud Office.

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