Shares in Slater and Gordon are being crushed.
They closed at $2.15, a fall of almost 20% on the day. The shares have lost 29.5% since Thursday’s close last week and are down 73% from the year high of $8.07.
The shares started their latest slide on Friday after the law firm’s annual general meeting.
The UK business had a slower than expected start to the financial year, according to managing director Andrew Grech.
However, the Slater and Gordon Lawyers business in Australia is performing well and is on track to meet its financial targets.
Full year guidance is for total fees of $1.15 billion and earnings of $205 million.
Chairman John Skippen apologised to shareholders for accounting errors.
ASIC reviewed the law firm’s accounting practices after financial reporting errors following the acquisition in April of the professional services division of UK legal group Quindells.
The company is positioning itself as the leading personal injury law group in the UK. The law firm paid $1.2 billion for Quindells Professional Services Division in the UK.
The company has since reclassified certain balance sheet items for the last two financial years, including revenue recognition.
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