Slater and Gordon shares have dropped 25% after errors reporting its UK revenue

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Law firm Slater and Gordon says it made errors reporting cash flow from its UK operations over the last three years.

The errors were uncovered during a detailed analysis of information to be provided to the corporate watchdog, ASIC, about the business purchased from Quindell in the UK for $1.3 billion.

Investors sold down Slater and Gordon shares last week after reports Quindell was being investigated by the UK’s Financial Conduct Authority.

Slater and Gordon also has accountancy firm EY independently assessing the responses to ASIC’s queries about its auditor Pitcher Partners.

It was during this process that a consolidation error in the reporting of the historical UK cash flows was found.

Slater and Gordon says the company’s net operating cash flows will be unchanged.

Its shares were down almost 20% to $4.08.

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