Listed UK company Quindell is facing legal claims of up to £9m after being served a notice of forthcoming action.
The company told the London Stock Exchange this morning that it has received a letter described as a ‘notice of intended claim’ from a law firm acting for a claimant group.
The letter was sent by north-west firm Your Legal Friend (YLF), which is representing shareholders who believe they have lost money due to alleged misleading profit statements.
The notice suggests that it intends to start legal proceedings against Quindell under the Financial Services and Markets Act.
The statement said: ‘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).’
It added that Quindell intends to ‘vigorously defend’ all such claims and they are not expected to have an impact on intended capital returns.
Quindell, which sold its professional services division to Australian firm Slater and Gordon earlier this year - effectively ending its provision of legal services - said it is not aware of any other groups or firms making claims against it.
The company said 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.
YLF announced last year that it was mounting a legal challenge on behalf of Quindell shareholders who may have lost money as a result of allegedly misleading statements about profit figures.
In June the firm said it had been contacted by more than 500 investors seeking compensation.
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