I joked here earlier this month that perhaps “professional courtesy” might spare publicly traded law firm Slater & Gordon — a major player in pursuing cases for plaintiffs in Australian securities class actions — from ending up on the receiving end of a shareholder class action. Alas, that is looking less and less likely and the sharks are circling.
To recap, Slater & Gordon’s stock price has plummeted from as high as $7.85/share in April 2015 to $3.17/share in mid-November 2015 to just $0.83/share as of today. The stock price seemed to stabilize a bit on November 30, when Slater & Gordon reaffirmed its 2016 financial guidance for revenue of $1.15 billion and earnings of $205 million. Yesterday, however, Slater & Gordon’s CEO announced that a review of the company’s guidance and forecasting processes required the company to withdraw the November 30 guidance.
