(Reuters) - Australian law firm Slater and Gordon Ltd <SGH.AX> said on Tuesday it would "vigorously" defend itself against a class action filed by shareholder Babscay Pty Ltd over the company's stock market disclosures.
The claim, filed late on Monday, alleged that Slater and Gordon's financial statements for the years ending 30 June 2013, 2014 and 2015 contained false or misleading statements. It has not been quantified, the company said.
Slater and Gordon's market value has plunged to about A$34.5 million ($26.19 million) currently, from about A$2.76 billion in April 2015 following its ill-fated acquisition of the professional services division of British technology and outsourcing company Quindell.
It is facing a number of lawsuits over its financial statements in recent years.
The Babscay allegations focus on the way Slater and Gordon recognised revenue and, in financial year 2015, accounted for acquisitions in accordance with Australian Accounting Standards.
"The company will defend the claim vigorously," Slater and Gordon said in a statement to the Australian Securities Exchange.
Slater and Gordon shares were up 1 percent at A$0.99 in early trade. The shares fell earlier this month after the company received notice of Babscay's planned lawsuit. At that time, details of the proposed claim had not been revealed.
Slater and Gordon last week filed its own lawsuit against British-based Watchstone Group Plc <WTGW.L> for about 600 million pounds ($763.86 million).
The claim is based upon allegations against Watchstone and its then senior management, including fraud, about Slater and Gordon's purchase of Watchstone's professional service division in 2015.
($1 = 1.3172 Australian dollars)
($1 = 0.7855 pounds)
(Reporting By Anusha Ravindranath in Bengaluru; Editing by Stephen Coates)
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