find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Slaters off the hook with ASIC, still struggling

Slaters off the hook with ASIC, still struggling

Uphill battle

The corporate watchdog has decided not to take enforcement action against Slater and Gordon, but the firm’s troubles are far from over.

The battling law firm was granted a slight boon on Friday when ASIC announced that it had concluded its investigation into Slater and Gordon’s accounts and found no breach of law.

The investigation was announced on 21 December 2016, and focused on the accuracy of the firm’s financial records between 1 December 2014 and 29 September 2015.

“ASIC has stated in its correspondence that the information and evidence available to it following its investigation does not indicate that there was a breach of law and it will not take any enforcement action,” Slater and Gordon said in an ASX statement on Friday.

The investigation followed the string of acquisitions that led to Slaters’ implosion, notably the purchase of UK professional services business Quindell for over $1 billion.

Despite accusations that Slater and Gordon misled shareholders and inflated the value of its shares, ASIC did not find sufficient grounds to take enforcement action against the firm.

Slater and Gordon’s share price rose over 30 per cent to 14.5 cents following the announcement of ASIC’s decision.

However, the firm still faces the prospect of restructuring and attempting to regain profitability. After its major lenders, including Westpac and NAB, sold their debt to distressed debt investors late last week, it appears that the new lenders are arranging a debt for equity swap.

“The company and new senior lenders believe a restructure by a debt for equity lender scheme of arrangement is in the best interests of all stakeholders,” Slater and Gordon said in an ASX statement on 17 March.

A debt for equity swap would give the new lenders substantial ownership of Slater and Gordon, and would likely dilute the value of existing shares even further.

In addition, Slater and Gordon still faces a $250 million shareholder class action brought by Maurice Blackburn.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Slaters off the hook with ASIC, still struggling
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Oct 23 2017
How to fail well
The legal profession is due for an attitude adjustment when it comes to perceived failures, accordin...
Oct 23 2017
Lawyers slam rushed consultation for SA repeat offenders bill
The Law Society of South Australia has expressed concern for a proposal to roll out new laws amendin...
Oct 23 2017
The pursuit of happiness in the law
A panel of legal experts have explored how to define success in the legal profession, and how lawyer...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...