Shares in the troubled ASX-listed law firm Slater and Gordon have gone into voluntary suspension, pending an announcement about an impairment in the value of its UK business.
Slater and Gordon shares have been on a slide since the company abandoned its profit guidance in December after problems with its UK subsidiary.
The law firm lost $2 billion in market capitalisation in 2015 and hundreds of millions since the British’s government announcement in November that it planned to limit compensation for road accidents .
The move means the business Slater and Gordon bought for $1.3 billion in March, Quindell, is under threat. About 90% of cases are related to traffic accidents.
Bryce Houghton, the newly appointed CFO at Slater and Gordon, is reviewing the company’s financial forecasting.
Financial results are due to be released on Monday.
Slater and Gordon shares last traded at $0.83. Less than a year ago they were worth more than $8.