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Slater & Gordon reveals losses of £493,000,000 and imminent redundancies
04 March 2016
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After the recent suspension of its shares, Slater & Gordon admitted on Monday that it suffered a staggering loss of £493 million during the second half of 2015. As a result, the P.I. firm's shares dropped faster this week than an accident prone claimant falling down an uncovered manhole, with the price down by more than 50%.

The firm's losses were largely attributable to the write-down of goodwill arising from S&G's acquisition of Quindell's professional services division in March 2015. Managing director Andrew Grech said at the time of the purchase that the firm would become “the number one personal injury law group in the UK". He offered to fall on his sword this week, but his resignation was rejected by S&G's board.

To make matters worse, a banking syndicate that finances S&G has demanded that the firm demonstrates it is taking steps to make the business viable. The banks could request a full debt repayment by 31 March 2017 if S&G fails to present a satisfactory restructuring proposal next month. The firm said that some of its services will be consolidated leading to "the closure of a number of current sites" and "a reduction in the total number of UK employees over the next 12 months". If you are an employee who might be affected, let us know what's happening here.
 
Slater & Gordon reducing its headcount 
 

Last December, rival firm Maurice Blackburn launched a class action against S&G, open to investors who purchased shares between April Fool's Day 1 April and 16 December 2015. And this week MB made an opportunistic statement that S&G's write-downs cast "enormous doubt on the adequacy of disclosures" made by the firm "in relation the true value of the Quindell assets".

ACA Lawyers has also announced that it has reached a financial agreement with funding groups to investigate bringing a shareholder class action against S&G. Bruce Clarke at ACA Lawyers said that there was anger from "small mum and dad investors to large institutional investors".

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Ukiyo-e
03/03/2016 23:56
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UK lawyers overvalued? Surely not!
anonymous user
04/03/2016 08:45
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How on God's green Earth does a law firm clock up a LOSS of £0.5bn in 6 months? That's half of the annual REVENUE of a top 10 global law firm. That is the equivalent of every lawyer at Hogan Lovells worldwide being paid for 6 months to come into work and surf Facebook while the firm incurs all of its overheads.
anonymous user
04/03/2016 09:23
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How? It's very easy. First, what you do is find a "country club built on quicksand" replete with a warehouse full of Salfordian parolees cold calling the world and his dog to drive a massive book of non-existent PI claims, then what you do is you get the thick end of £650,000,000 out of your back pocket while determinedly ignoring the entire world as it screams at you 'This is an apocalyptically terrible idea'.

By then, you're well on your way. The unstoppable momentum of your stupidity makes it easy to take a lot of hitherto motivated staff with specialisms in things like brain injury litigation, and banish them to the outer darkness there to run thousands of noise induced hearing loss claims of dubious provenance, being a work type none of them have any experience in, and expecting them to turn the turds into diamond-encrusted Bentleys when actually, they were, are and will remain turds.

It's quite simple, really.
anonymous user
04/03/2016 22:49
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Having recently worked for Quindell I can fully understand how such losses were racked up. They have thrown money at expanding into NIHL claims with minimal results. Quindell seemed rotten from within stemming back to the buyout of Silverbeck and the issues they had following the text for claims investigations, some of the directors were still in place from this era and it was clear to see how some less than ethical business practices may have remained.
I feel for the staff who were sold dreams of progression within a top law firm only to be sold up the river by a company that ultimately got too greedy for its own good and expanded way beyond its means.
anonymous user
11/03/2016 08:02
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All of this looks terribly like pre-crash over-optimism. Steer very well clear of anyone who is talking enthusiastically about "fintech" - they have sprung fully-formed from the buried teeth of the clowns who sold the banks "collateralised debt obligations".