Slater and Gordon is going after the UK company which sold it a failure

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Legal group Slater and Gordon is bringing claims against the Watchstone Group Plc, the UK group which sold it the troubled Quindell’s Professional Services Division.

That business has been at the heart of Slater and Gordon’s problems which resulted in an annual loss of $1.017 billion.

That result posted last month included a $879.5 million writedown against the value of goodwill after its UK business earnings were worse than expected.

The world’s first stock exchange listed legal firm bought the professional services division from UK insurance claims company Quindell for £637 million ($A1.2 billion) in April 2015.

Slater and Gordon says £50 million ($A86 million) of the purchase price is being held in escrow against warranty claims.

The company is reorganising and cutting costs, meaning redundancies in the UK where it has 3950 of its 5350 staff.

Last year the shares hit a high of $8.07, valuing the company at $2.8 billion, but have been on steep slide because of its underperforming UK business and the British government plans to limit compensation for road accidents.

The shares are trading at $0.40 today.

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