Quindell buoyed by libel case win against Gotham
QUINDELL has won its libel claim against mysterious US short seller Gotham City Research, sending shares in the company rising as much as 11 per cent in reaction to the news yesterday morning.
The British insurance outsourcer issued libel proceedings against Gotham in April, after it had posted a critical note on Quindell, describing it as “a country club built on sand” with a target price of just 3p.
Quindell was hit badly by the Gotham City report which alleged that its profits were suspect, as shares in the company bombed in April and still remain 72 per cent down following the attack.
The libel claim was served out in Gotham’s jurisdiction of Delaware, yet Quindell said Gotham failed to provide either acknowledgement of service or a defence.
“We are pleased that following the co-ordinated shorting attack led by Gotham and others, we have been able to successfully win judgment from the High Court in our claim for libel against Gotham,” said Quindell’s vice- chairman Tony Bowers.
“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… to protect its reputation and the best interests of its shareholders.”
Shares closed up 1.36 per cent at 167.25p.