Tainted Quindell to launch revival with a fresh CEO

QUINDELL is set to appoint a chief executive as early as Monday in a bid to instil confidence in the company’s future.

The embattled technology firm is facing a Serious Fraud Office i nvestigation after restated accounts revealed it had not been profitable for years. It had planned to name its new boss this week – understood to be a technology executive with significant industry experience – but the move has been delayed.

An announcement to the stock market is expected next week, and could be made as early as Monday, but Quindell refused to comment last night.

It is 78 days since Quindell (up 2.5p to 93p) parted ways with chief executive Robert Fielding when the company sold its legal division to Australian law firm Slater & Gordon for £640m. His replacement will start a review of the company that is expected to lead to it ditching the tainted Quindell name.

Once a stock market darling with a value of £2.7bn, the firm’s value collapsed last year after questions were asked about its accounting policies.

Founder and chairman Rob Terry ( pictured) who told investors the company would one day join the FTSE 100, was ousted last year after selling shares while sitting on pricesensitive information.

Investors who bought at the peak lost more than 90pc of their money during the year – and hundreds have since signed up to sue the company.

The legal firm organising the case, Liverpool-based Camps Solicitors, says it has seen a surge in numbers since the SFO began its probe.

Colin Gibson from Your Legal Friend, the trading name for Camps, said up to 200 investors came forward in the last month, adding: ‘The aspect that took us by surprise was the full extent of the prior year restatements that go right back. It was incredible that the whole financial records that investors had made their decisions on had to be changed. The scale of them was fairly enormous.’

Any legal challenge is likely to focus on Terry’s role. As well as making £16m selling shares before and after leaving, Terry also received £1.5m in redundancy pay. The empire he built, largely by buying firms ranging from scaffolders to solar panel i nstallers, has since been carved up and parts of it sold. Last week Quindell said some of the l argest acquisitions made during Terry’s tenure were almost worthless.

Any Quindell shareholder who wants to join the lawsuit can contact Your Legal Friend on 0808 123 8123