Quindell, the technology company, has said it had won a libel action against a US short seller.
Some £900m was wiped off the value of the company in April when Gotham City Research issued a report questioning Quindell's prospects. The company called the comments "highly defamatory and deliberately misrepresentative" and issued libel proceedings.
Now Quindell said it - and fellow claimants including chairman Robert Terry - had received judgement in their favour from the High Court. The process of evaluating the size of any damages will begin in November.
In a statement to the stock exchange Quindell said claim particulars were served on Gotham City in Delaware in July, but "Gotham failed to provide either acknowledgement of service or a defence."
Quindell director Tony Bowers said:
We are pleased that following the co-ordinated shorting attack led by Gotham and others, we have been able to successfully win judgement from the High Court in our claim for libel against Gotham.
Whilst it is disappointing that Gotham has not been prepared to submit itself to the scrutiny of the English Courts, we have consistently stated that we believe the Gotham publication was both defamatory and deliberately misrepresentative and it is pleasing to receive validation of our claim and success in this matter. The company will continue to pursue actions of this type, where necessary, to protect its reputation and the best interests of its shareholders.
The news has sent Quindell shares 8.25p or 5% higher to 173.25p. Analyst Sophie Blandford at Daniel Stewart said:
The stock continues to trade on an undemanding multiple of three times 2014 earnings, a significant discount to other software participants in the market. We reiterate our buy recommendation and our 1005p target price.
