Outsourcing giant Quindell has claimed victory in a libel action against Gotham City Research, an American company which triggered a collapse in Quindell’s share price by publishing a highly critical report.
Quindell said at the time of its publication in April that the report was part of a “shorting attack” and described it as “highly defamatory” and “deliberately misrepresentative”.
Tony Bowers, senior independent director and vice chairman of Quindell, said today that he was pleased that the company had been able to “successfully win judgment from the High Court” in its claim for libel against Gotham.
“Whilst it is disappointing that Gotham has not been prepared to submit itself to the scrutiny of the English Courts, we have consistently stated that we believe the Gotham publication was both defamatory and deliberately misrepresentative and it is pleasing to receive validation of our claim and success in this matter.
“The company will continue to pursue actions of this type, where necessary, to protect its reputation and the best interests of its shareholders.”
In a statement to the Stock Exchange, a spokesman for Quindell said: “On 30 April 2014, libel proceedings were issued in the High Court against Gotham on behalf of Quindell and others.
“On 23 July 2014, the High Court granted permission for the claim form and particulars of claim to be served out of the jurisdiction on Gotham in Delaware and these were validly served on 29 July 2014. Gotham failed to provide either acknowledgement of service or a defence.
“The board of Quindell announces that it (and its fellow claimants including Robert Terry, chairman of Quindell) have now received judgment in their favour from the High Court against Gotham.
“The process of the evaluation of quantum in damages will begin at the end of November 2014.”
Quindell’s share price collapsed from 40p to 17p in a matter of days in the wake of the Gotham City report.