Slater and Gordon has been cleared by the corporate watchdog after a review of the embattled law firm's financial records found no evidence it had breached the law.
The probe was announced in December in the wake of a series of large impairments related to the problematic UK business it acquired in March 2015.
The Australian Securities and Investments Commission studied records and accounts covering December 1, 2014, to September 29, 2015, for evidence of deliberate falsification or manipulation.
"ASIC has stated in its correspondence that the information and evidence available to it following its investigation does not indicate that there was a breach of law and it will not take any enforcement action," Slater and Gordon said in a statement on Friday.
Slater and Gordon''s share price crashed from an all-time high of $8.07 in April 2015 to 6.5 cents at the start of this month.
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It posted a $1 billion annual loss in 2015/16 and last week said it is set to be restructured after more than 94 per cent of its debt - which is larger than the firm's vastly diminished value - was offloaded to secondary debt buyers.
At 1441 AEDT Slater and Gordon shares were up 2.5 cents to 13.5 cents.
