Quindell law suit, and Camkids

This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

Many private investors lost money on their investments in Quindell. It was one of the most highly traded stocks on the market. Now a legal action has been launched by law firm “Your Legal Friend” on the basis of misleading statements being issued by the company during 2013 and 2014.

To quote from the lawyers web site, where you can register your interest (see https://www.yourlegalfriend.com/types-of-claim/public-incidents/quindell-investment-claims ):

“We have been contacted by many such investors who relied on a range of positive statements issued by Quindell about the group’s trading, profitability and cash generation in RNS announcements to the London Stock Exchange and other documents. Other investors have informed us that they relied upon the RNS announcement on 5 November 2014 that the directors of Quindell had purchased 1,575,000 shares in Quindell.   

We are investigating whether various of the RNS announcements issued by Quindell and relied upon by investors could be considered to be untrue and/or misleading, and if material facts were not disclosed to the market at the appropriate time, which may in turn have caused investors to suffer actionable losses. We believe that there are grounds for a s.90A Financial Services and Markets Act 2000 claim against Quindell in relation to those announcements.”

Co-incidentally, it has been decided that Quindell is one company we will be discussing at our next Masterclass on the 4th November. No doubt part of the discussion will be how to avoid investing in similar companies where investor expectations turn out to very different to the glowing statements by the management! See this web page for more information on this event in due course: www.sharesoc.org/events/.

Another questionable company in terms of investment in the past was surely Chinese company Camkids which ShareSoc has covered in our past newsletters to Members. The latest announcement states that two more directors have resigned including the CFO, and that the Nomad (Allenby) has also resigned. This follows the decision to pay out most of the company’s cash holdings to buy back stock from distributors. If they cannot find another Nomad to take them on quickly then the shares will be delisted, which seems very likely to be the result.

Roger Lawson

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