Embattled legal firm Slater and Gordon says it will vigorously defend a class action brought by investors hit by its 2015 share price slump.
More than 3000 shareholders who lost more than $250 million when Slater and Gordon shares fell by almost 95 per cent within eight months have so far signed up to an open class action filed by rival law firm Maurice Blackburn.
They claim Slater and Gordon misrepresented to the market, and failed to disclose in a timely way, a range of information about its financial performance and prospects.
It mainly relates to the firm's disclosure of details of its $1.2 billion acquisition of Quindell's professional services division in the UK.
"Slater and Gordon has engaged external legal advisors to act for it and will vigorously defend the claim," managing director Andrew Grech said in a statement.
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"The class action will not affect the day to day conduct of Slater and Gordon's client matters."
A second legal firm, ACA Lawyers, also plans to launch class action proceedings against Slater and Gordon over what financial information the company disclosed to the stock market, and when.
