Insurance Post

Quindell begins legal proceedings against Gotham in the US


Outsourcing company Quindell has confirmed that it has started legal proceedings against US short sellers Gotham City, as well as a blogger that repeated “defamatory” claims about the company.

"Legal action has already been initiated by the company against Gotham, with papers having been served in the US, and legal action is now being initiated against the blogger," Quindell said in a statement on the company website.

"The board considers the assertions of both Gotham and the blogger in question to be highly defamatory, deliberately misrepresentative and entirely rejects the conclusions that are made," it added.

Quindell founder and executive chairman Rob Terry told Post last month that the firm would do "everything we can" to pursue legal action against Delaware-based research firm Gotham City, despite the difficulty given their US jurisdiction.

Responding to the most recent allegations, the firm said it rejected "assertions raised in an online publication by one blogger that the group has bought worthless companies to financially benefit ‘old pals' of the board and therefore inappropriately used shareholder funds thereby suggesting that the company and certain board members have effectively committed fraud".

"This appears to be a regurgitation by the blogger, in an even less professional and more defamatory manner, of certain allegations made by Gotham City Research to which the group already provided a detailed response in April 2014," it said.

It reiterated that it had a "strict acquisition criteria" and added: "This includes where possible, working with the target company over a number of months and/ or having pre-existing knowledge of the quality of the management team of the business."

Tony Bowers, vice chairman of Quindell said it was "disappointing that my executive directors have once again been forced to spend time respondiing to these false allegations."

"With this matter now in the hands of the company's lawyers, it is the intention of the board not to engage further in responding to these defamatory and clearly misleading statements," he added.

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