Insurance claims handler faces FCA and SFO investigations amid deepening losses

Shares in Quindell, the troubled insurance claims handler, have fallen 28% on their first day of trading since they were suspended in June. The shares fell as much as 40% in early trading and closed down by more than a quarter, leaving the company valued at just under £400m. Quindell, which was briefly viewed as a star stock, was valued at £2.9bn in February 2014 before Gotham City Research, a US hedge fund, published a report attacking its business model.

Quindell suspended its shares on 24 June when it announced an investigation into its past acquisitions. The scandal enveloping the company intensified on Wednesday when the Serious Fraud Office announced a criminal investigation into its accounts. The Financial Conduct Authority is also investigating Quindell, and the accounting regulator, the Financial Reporting Council, is looking into the conduct of two of Quindell’s past auditors, KPMG and RSM Tenon, now part of Baker Tilly.

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Source: The Guardian Circular Economy RSS