Embattled listed legal services provider Quindell has denied reports it is about to lose a major contract with a claims management firm.
The company responded to a report speculating that it will lose a contract signed in May 2013 with a claims farmer based in the north west.
The article also made a number of other allegations, including that Quindell will not pay anyone until next year and it may have to sell parts of the business to raise extra cash.
In the statement, released to the London stock exchange today, the company said: ‘Contrary to speculation, [Quindell] has not lost a major contract with a large claims management firm based in the north west of England and relationships with partners and customers remain strong.
‘Further, the company confirms that the other negative statements in the same article are also untrue.’
The statement appeared to trigger a small uplift in fortunes as the share price rose this morning by almost 12%.
That still leaves its share price languishing at 63.75p – a far cry from the summer when shares traded at more than 200p.
This week has seen former chairman Rob Terry and former finance director Laurence Moorse forced to terminate shares agreement made with US firm Equities First Holdings.
Three directors had agreed to transfer cash or shares to EFH if the share price fell more than 20% from the discounted value at which they were transferred. This duly happened last week as the share price more than halved to less than 50p per share.
Terry retains 38.1m shares, representing 8.73% of the total issued ordinary share capital of the company.