(Reuters) - Australian law firm Slater & Gordon Ltd <SGH.AX> said on Tuesday it had reached an in-principle agreement to settle a class action suit against the company and its directors, as well as related shareholder claims, for A$36.5 million ($28 million).
A troubled buyout of the professional services division of British technology and outsourcing company Quindell had led to at least two lawsuits which alleged the company misled investors about its financial position.
The company's shares climbed as much as 13.5 percent in morning trade, its biggest one-day gain in nearly four weeks, on the news.
It was last up 12.2 percent to give it a market value of about A$28.8 million. That compares, however with a peak of about A$2.76 billion in April 2015 after which it was hit by a series of earnings downgrades and complications associated with its British expansion.
On June 29, Slater & Gordon struck a recapitalisation deal with a majority of its secured lenders that gives them almost full ownership of the company.
($1 = 1.3151 Australian dollars)
(Reporting by Hanna Paul in Bengaluru; Editing by Edwina Gibbs and Byron Kaye)
