Where we are now
To date, we have been contacted by around 500 potential claimants, and this number continues to increase steadily. Currently, we are still in the process of establishing the details of each potential claimant’s investment transactions, as well as investigating all of the potential claimants still coming forward.
Where the case is going
We are exploring a number of legal options for action against a range of possible defendants. However, the clearest route in most cases is likely to be a claim against Quindell PLC itself, under section 90A of the Financial Services and Markets Act 2000 (“FSMA”).
Section 90A of the FSMA 2000 relates to misleading statements or dishonest omissions by an issuer of securities in relation to its published statements through, in this case, the Regulatory News Service (“RNS”).
This legislation refers to compensation from an issuer of securities, for anyone who acquires, continues to hold or disposes of securities based on misleading statements or dishonest omissions (and consequently suffers loss). Unfortunately, this area of law is still relatively untested in the courts.
We have recently undertaken an initial conference with one of the barristers we expect to instruct. We now believe that the clearest cases are likely to be those where an investor has acquired shares following a demonstrably misleading published statement or dishonest omission.
It is our belief that there have been a number of such statements and omissions spread over a period of time, but we recognise that the burden of proof lies with the claimant. For some of these statements and omissions, we believe that most of the evidence needed to demonstrate that they meet the terms of the FSMA is already publicly available. It is therefore our intention to move forward in the short term with these.
For other potentially misleading statements, including published financial performance statements, statements in relation to the value and prospects of certain acquired businesses, the expected impact of contract wins etc., we expect that additional evidence will be provided over the coming months from:
- The PwC report on accounting policies and related matters currently underway
- The 2014 Annual Report
- Asset or business disposals currently being considered by Quindell PLC
For such cases we will await and consider this further evidence before proceeding. It is our expectation that, dependent on the timing of share acquisition and holding, each potential claimant may be involved in one or more actions, related to one or more examples of misleading statements or dishonest omissions.
Where appropriate and possible, we will make applications for group litigation orders, to allow groups of similar cases to be considered together efficiently with shared common costs.
We hope the information provided has answered any queries you may currently have, and you will be updated again in due course. If you do have any further questions, please do not hesitate to contact us.