Slater & Gordon confirms UK accounting errors, regulator probe
SYDNEY – Australian law firm Slater & Gordon (SGH.AX) said on Monday it was being investigated by the Australian Securities and Investments Commission (ASIC) over errors in its reporting of UK cashflows, sending its shares down 26.4 percent.
Slater & Gordon said it had started its own investigation into consolidation errors it had found in financial reporting for 2012, 2013 and 2014 for its UK business and was cooperating with the ASIC inquiry.
The law firm said its net operating cashflows for those periods were unaffected.
ASIC told the company on Friday it wanted to put questions to the law firm directly after a routine review of the firm’s relationship with its auditor, Slater & Gordon said in a statement on Monday.
Slater & Gordon’s share price has tumbled 37.8 percent this year, wiping out nearly A$800 million (388.9 million pounds) from the dual-listed company’s market capitilisation.
UK-based technology company Quindell Plc (QPP.L), which Slater & Gordon acquired a unit of in March, is also under investigation by the UK’s Financial Conduct Authority about statements made during 2013 and 2014.
Slater & Gordon said it would have no liability arising from that enquiry and that Quindell was due to lodge its revised accounts in the UK shortly. –Reuters