Shares in listed law firm Slater and Gordon have taken another battering after lawyers Maurice Blackburn threatened legal action against Slater and Gordon over its financial disclosures.
It is the second threat of legal action against Slater and Gordon in the past week.
Sydney-based firm ACA Lawyers is also considering a possible class action against Slater and Gordon for potentially misleading the market over an $890 million capital raising to acquire UK insurance claims processor Quindell's professional services division, and profit forecasting for the 2016 financial year.
Slater and Gordon shares were 6.5 cents, or 6.63 per cent, lower at 91.5 cents on Wednesday.
Maurice Blackburn said on Wednesday that it is opening registrations for Slater and Gordon shareholders to pursue a class action against Slater and Gordon.
"The decision has been made after long and serious consideration of the series of events that have plagued Slater and Gordon this year," Maurice Blackburn said.
Maurice Blackburn's class actions principal Jacob Varghese said the class action will be about the timeliness of the release of information by Slater and Gordon on five occasions between April and December 2015.
OptionsXpress market analyst Ben Le Brun said investor sentiment towards Slater and Gordon was "absolutely appalling" at the moment.
"Lawyers taking on lawyers is almost playing out like a John Grisham novel," he said. American Author John Grisham is best known for his popular legal thrillers.
Mr Le Brun said any stock that had experienced a massive slump in its share price such as Slater and Gordon had seen over the last eight months would most likely face some sort of class action.
"It's coming on the back of the Quindell acquisition, which is just about the disaster of the year, the subsequent capital raising, and Slater and Gordon's guidance - so it (the potential class actions) are just another overhang for the stock," he said.
Slater and Gordon completed the acquisition of the Quindell professional services division, now called Slater Gordon Solutions, for $1.2 billion in May 2015.
Slater Gordon Solutions provides personal injury law services.
Slater and Gordon raised $890 million in April to help fund its acquisition of Quindell's professional services division, issuing shares to investors at $6.37 each.
But most of the news around Quindell's professional services division has been negative.
Slater and Gordon shares tumbled last week when the law firm dumped its earnings guidance for this financial year due to the UK business - which comprises Slater and Gordon Lawyers (UK) and Slater Gordon Solutions - performing below expectations.
The withdrawal of the 2016 guidance came 17 days after Slater and Gordon had re-affirmed it.
Shares in Slater and Gordon hit an all-time high of $8.07 in April but slumped to an all-time low of 59.5 cents in November over concerns about the Quindell professional services division's performance and revisions to Quindell's historical accounts.
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