Fallout from the troubles of one-time stock market darling Quindell, which sold its professional services division to national firm Slater and Gordon in a disastrous £637m deal, continued today with the announcement of a £5m settlement with Big Four firm KPMG.

In a statement to the London Stock Exchange, Watchstone Group plc, a rump company handling Quindell's litigation and contingent assets, said it had agreed terms for the settlement of its claim over the 2013 audit of Quindell's financial statements. The statement continued: 'Under the settlement, which is made without admission of liability by KPMG, KPMG will pay Watchstone a sum of £4.95m in full and final settlement of the claim.' 

KPMG was fined £3.15m by the Financial Reporting Council in 2018 after admitting to misconduct in handling Quindell's financial statements. 

Quindell, originally a country club operator, diversified into insurance and software in the last decade and at one stage was the most valuable company listed on the London alternative investment market. In April 2015 it sold its professional services division to Slater and Gordon, which had arrived in the UK three years previously by acquiring top-100 firm Russell Jones & Walker. Fallout from the deal brought about the near collapse of Slater and Gordon and a blizzard of legal action.

The Serious Fraud Office last year concluded a six-year investigation into Quindell, with no further action being taken.

Watchstone confirmed today that a £63m claim against another Big Four firm, PwC, is still ongoing. PwC has denied the allegations and said it will vigorously defend the claim.

Shares in Watchstone Group plc slipped 1.85% to 26.5p today.

 

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