Maurice Blackburn launches class action suit against rival Slater & Gordon

Legal firm Maurice Blackburn has launched a class action suit against rival Slater & Gordon, considered as a class action specialist.

Maurice Blackburn planned to approach the shareholders of Slater & Gordon to file class action suit against the company on Wednesday. In a statement, the legal firm stated that it was “opening registrations to aggrieved shareholders wanting to pursue a class action.” It also mentioned that the shareholder class action will focus on timely release of information.

The shares of the accused firm have fallen to about 90 percent in the past 12 months. The accounting practices and the performance of Quindell, its British legal services business worth $1.3 billion acquired in March, have been under investigation for a long time. Maurice Blackburn said Slater & Gordon must know how important it is to convey a right message at the right time. Timing and accuracy of information released by it in the market in 2015 have been doubtful.

The class action suit will include shareholders who bought Slater & Gordon’s shares between April 1 and Dec. 16. According to analysts, the accused legal firm could obtain emergency capital funding and select proper dividends for its bankers at bay and rebuild its market goodwill.

Slater & Gordon released a statement to the Australian Securities Exchange and mentioned announcements made by legal firms regarding investigations including shareholders class action suit. “The company has not been notified of any legal proceedings,” the statement read. “Slater & Gordon will continue to monitor the situation and update the market if necessary.”

Late in November, the accused firm misinformed its shareholders about the share prices and ensured that it will fulfil all earning projections expected by them. But after 17 days of the announcement, Slater & Gordon backed away from what it promised to shareholders.

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