Seasoned litigants Slater and Gordon could themselves face a class action.
Sydney-based firm ACA Lawyers is considering a possible class action against the listed law firm for potentially misleading the market over both the $890 million capital raising to acquire Quindell's professional services business in the UK and profit forecasting for the 2016 financial year.
Slater and Gordon shares tumbled on Thursday after it dumped its earnings guidance for this financial year due to its UK business performing below expectations.
The law firm said it was reviewing its approach to financial forecasting and withdrawing its recently reaffirmed full year guidance for 2016 of revenue in excess of $1.15 billion.
"What we are seeing at the moment is a company that appears to be unable to accurately provide the market with the information needed to make considered decisions on the value of Slater and Gordon," ACA Lawyers principal Bruce Clarke said in a statement.
Slater and Gordon could face legal proceedings, including a potential class action by investors who have purchased shares without all available information, he added.
ACA urged investors who had purchased Slater and Gordon shares since April 2015 to get in touch with it.
Slater and Gordon raised $890 million in April to fund its $1.2 billion acquisition of UK firm Quindell's professional services division, issued shares to investors at $6.38 each.
At the time, it said the acquisition would increase earnings per share by more than 30 percent in the first year.
Shares in the company 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 its UK business and revisions to its financial reports.
Slater and Gordon last month changed auditors after acknowledging that the need for adjustments and corrections to its results for the 2014/15 and 2013/14 financial years had undermined confidence in the business.
Its shares slid 17 per cent to 89 cents on Thursday after the firm withdrew its earnings guidance, and were down another six cents to 83 cents on Friday.
