Beleaguered Australian firm Slater and Gordon has agreed in principle to a AUD36.5 million (£21 million) settlement payment to its own disgruntled shareholders.

Thousands of shareholders instructed Maurice Blackburn Lawyers to claim compensation for the value of Slater and Gordon's business plummeting following its purchase of Quindell in 2015. Shares have fallen though the floor since the disastrous acquisition, from a high of AUD8 two years ago to a measly 8 cents a share today.

A statement by the firm said that the settlement would "resolve any and all potential shareholder claims against the Company and its directors and officers".  AUD32.5 million of the settlement deal will be paid out from the firm's directors and officers' liability insurance, with the remaining AUD4 million to be paid by Slater and Gordon's lenders. Maurice Blackburn lawyer Andrew Watson said that the settlement effectively wipes out Slater and Gordon's indemnity insurance policy and it was the only payment option available to the claimants.

Slater and Gordon has had a torrid time of it recently. Last year it recorded a AUD1 billion loss, its shares were suspended, it suffered accusations of bullying and when their pay cheques arrived late staff told RollOnFriday they were worried about its future. Other than that, things have been rosy.
  Business as usual at Slater and Gordon

In other shareholder news, London firm Gordon Dadds may float as Work Group plc has made a conditional offer of £18.8m to purchase the firm. Should the deal go ahead, Gordon Dadds will be hoping for a smoother ride from its future investors than the embattled Slater and Gordon has had to endure.
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Anonymous 15 July 17 11:09

The word is that the UK operation is to be split out from the main company so they are looking at cutting more bone from the bone.