Law firm Slater and Gordon share price falls as it faces class action over Quindell division purchase from rival Maurice Blackburn

 
Jessica Morris
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Slater and Gordon sponsors the Australian Olympic team (Source: Getty)

Slater and Gordon is facing a possible class action suit from a rival law firm due to a "devastating" share price drop suffered since acquiring a division of embattled Quindell earlier this year.

Rival Maurice Blackburn said shares in the law firm have shed around 90 per cent since April, as investors questioned its acquisition of the professional services division of insurance outsourcer Quindell for £633m.

The uncertainty has been compounded by proposed legislative changes to the personal injury market in the UK, as well as Slater and Gordon's withdrawal of revenue and earnings guidance.

Maurice Blackburn said it was looking to start "a shareholder class action should we determine after further investigation that Slater and Gordon has a case to answer in relation to its disclosures to the market and the devastating share price drop suffered by its shareholders."

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