UPDATE 1-Australia's Slater and Gordon facing class action suit
(Adds details on lawsuit, quote in par 6, share price in par 7,
June 20 (Reuters) - Australian law firm Slater and Gordon
Ltd <SGH.AX> said on Tuesday it would "vigorously" defend itself
against a class action filed by shareholder Babscay Pty Ltd over
the company's stock market disclosures.
The claim, filed late on Monday, alleged that Slater and
Gordon's financial statements for the years ending 30 June 2013,
2014 and 2015 contained false or misleading statements. It has
not been quantified, the company said. [nASXsYd0B]
Slater and Gordon's market value has plunged to about A$34.5
million ($26.19 million) currently, from about A$2.76 billion in
April 2015 following its ill-fated acquisition of the
professional services division of British technology and
outsourcing company Quindell.
It is facing a number of lawsuits over its financial
statements in recent years.
The Babscay allegations focus on the way Slater and Gordon
recognised revenue and, in financial year 2015, accounted for
acquisitions in accordance with Australian Accounting
"The company will defend the claim vigorously," Slater and
Gordon said in a statement to the Australian Securities
Slater and Gordon shares were up 1 percent at A$0.99 in
early trade. The shares fell earlier this month after the
company received notice of Babscay's planned lawsuit. At that
time, details of the proposed claim had not been revealed.
Slater and Gordon last week filed its own lawsuit against
British-based Watchstone Group Plc <WTGW.L> for about 600
million pounds ($763.86 million).
The claim is based upon allegations against Watchstone and
its then senior management, including fraud, about Slater and
Gordon's purchase of Watchstone's professional service division
($1 = 1.3172 Australian dollars)
($1 = 0.7855 pounds)
(Reporting By Anusha Ravindranath in Bengaluru; Editing by
((email@example.com ; +91 80 6749 1130; Reuters
Keywords: SLATER & GORDON LAWSUIT/ (UPDATE 1)