Slater & Gordon is being investigated by regulators in Australia, sending the listed firm's share price through the floor.

The Australian firm and its auditors Pitcher Partners are being probed by the Australian Securities and Investments Commission (ASIC) in relation to accounting errors that occurred between 2012 to 2014. Slater & Gordon has acknowledged that cash receipts from customers were overstated, meaning the firm didn't convert as much work-in-progress into cash as the market had been led to believe. The stock market has reacted accordingly: shares in Slater & Gordon plummeted 40% in five days of trading on the Australian Stock Exchange. That's a nasty fall for a personal injury firm.

  An accident in Slater & Gordon's accounts department. How it might have looked.

Sydney hedge fund manager VGI has compiled a dossier which heavily criticises Slater & Gordon's accounts, raising 10 key 'red flags' against the firm's accounting practices. It also expresses concerns over the firm's buying spree, in particular the recent purchase of troubled insurer Quindell's PI business. Quindell itself is currently under investigation by the Financial Conduct Authority (FCA).

Adding to the firm's woes, a source tells RollOnFriday that Slater & Gordon UK is also having continuing problems with its new IT system. Earlier this year it rolled out "Claimball"Mattersphere" in an attempt to integrate the new firms it has acquired. But apparently the system is hanging several times a day and is far slower than the systems it replaced. It's not the first time the firm has suffered IT problems  and a spokeswoman said "With any change of this size there will be challenges for staff but they have been incredibly supportive during this transition". She added that "we want to thank them for their patience and hard work during the process".
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Anonymous 03 July 15 09:32

Oh the irony if they become the subject to a Group Litigation Order by investors. Your case is now their case...

Anonymous 03 July 15 14:46

I'm sure I once saw an advert on the tube exhorting the reader to 'Instruct a competent firm of auditors, before your regulator does'.

Anonymous 03 July 15 17:17

As my complaint to the SRA (with documentary evidence in support) will attest; I have serious concerns about the integrity and honesty of the solicitors in the UK arm of the firm, to such a degree that it is now going to Michael Gove, as the investigators from the SRA may once have been linked to the firm.

Anonymous 05 July 15 13:43

For those scoring down the previous comment I can only assume you are unfortunate enough to have to work there, and as a humanist and champion of the good, you have my deepest sympathy.

Anonymous 10 July 15 08:52

We sold our business and got some shares which are now massively devalued by managerial incompetence. What shall we blow our money on next? A turd? Oh no, we've just done that.