Slater and Gordon is facing more legal action, with one of its shareholders planning proceedings against the troubled law firm over allegations of misleading representations in three straight sets of full-year results.
The law firm, which is already facing two potential class actions from shareholders whose stakes have plummeted in value, on Thursday said it received a letter stating Babscay intends to take action over allegations of misleading representations in the company's 2013, 2014 and 2015 financial statements.
Slater and Gordon said, in a statement to the Australian Securities Exchange, the full details of Babscay's claim were not included in the letter from Johnson Winter & Slattery Lawyers.
Babscay is not listed among Slater and Gordon's 20 largest stakeholders.
Slater and Gordon's market value has fallen from $2.8 billion in April 2015, to just $32.3 million following its disastrous $1.2 billion acquisition of Quindell's professional services division in the UK,
At 9.3 cents, its shares are valued at just one per cent of the $8.07 they were worth in April 2015.
Slater and Gordon in May announced plans for a $1 billion claim for fraud against the company from which it acquired the UK business, which dragged it to a $1 billion loss in 2015/16 and to the brink of bankruptcy.
But Slater and Gordon is itself facing allegations, with rival law firm Maurice Blackburn leading a class action representing thousands of shareholders over disclosure of financial information between March 2015 and February 2016.
ACA Lawyers is also investigating a potential class action relating to a period between August 2014 and February 2016.
