Slater and Gordon to sue over £637m Quindell buy-up

THE Australian law firm crippled by its takeover of Quindell’s ambulance-chasing business is planning to sue the British company, writes Hugo Duncan.

Slater and Gordon bought Quindell’s injury claims business, which deals with car crashes and accidents at work, for £637m last year.

But the deal quickly turned sour as the Serious Fraud Office began an investigation into Quindell’s accounts, and Slater and Gordon had to write off more than £500m relating to the takeover.

Slater and Gordon, which specialises in no win, no fee personal injury claims, was also hit by a crackdown on whiplash claims in the UK.

The Australian outfit said it ‘intends to bring claims’ arising from the takeover against Watchstone Group – Quindell’s new name.

The case could see Slater and Gordon recoup £50m of the purchase price that was put into escrow and was due to be paid out in November.

However, Watchstone dismissed the claim as groundless and pledged to defend itself. It said it had conducted ‘a professional and transparent disposal process’ of the company, and that Slater and Gordon was given the opportunity to complete ‘an extensive and detailed due-diligence process’.

Watchstone shares fell 7.3pc or 15.8p to 200.3p.