Claims Direct Stock Exchange float is beset by legal cases

Personal injury group Claims Direct, which floats on the Stock Exchange this week, has been dogged by legal claims from its own managers in the week preceding its flotation.The group offered shares to the public this week for 180p each; which would net its solicitor chief executive Colin Poole, a profit of 18.36 million.Meanwhile, 9 million of potential litigation was disclosed by the company in its prospectus.

Many of the claims are brought by former managers such as Peter Carroll, who is bringing a 3.5 million claim on behalf of three other managers, alleging that changes to their franchise agreements constituted breaches of contract and misrepresentation.Mr Carroll contended this was 'the tip of the iceberg', and predicted that many more managers would bring actions.Mr Poole said: 'These cases are very small in relative terms.

We've disclosed all the litigation we're aware of and it's unlikely Mr Carroll will be proved correct.'

Jeremy Fleming