Tuesday, March 21, 2017

Public Firm, Public Conflicts Allegation

Touching on a multiple issues and topics we've previously covered: "Slater and Gordon accuses class action firm of conflict" -- 

  • "The $100 million legal battle over the share-price collapse of listed law firm Slater and Gordon has taken a bitter twist over an allegation of a serious conflict of interest. Slater and Gordon faces a class action led by its No.1 rival, Maurice Blackburn, after the collapse of its share price last year."
  • "The spur for the conflict-of-interest allegation was a move by Maurice Blackburn to apply to the Federal Court for details on Slater and Gordon's insurance policies and documents relating to the debt-strapped law firm's rescue deal with its bankers."
  • "Its application came after Fairfax Media revealed a rescue package for the debt-strapped law firm will use a legal precedent to ring-fence the company's assets from secondary creditors including class action claimants."
  • "Fairfax Media also revealed Slater and Gordon is expected to reach an in-principle agreement with its bankers for a debt-for-equity swap by March 17. Lawyer for Slater and Gordon, Leon Zwier of Arnold Bloch Leibler, said he had concerns about Maurice Blackburn representing shareholders and that should also be discussed in the mediation talks.
  • "'It's a serious issue,' Mr Zwier told the court. 'It's like asking Channel Seven to play a role in the reconstruction in Channel Nine.'"

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