Quindell, the technology company whose shares lost 38% on Tuesday following a disputed research report on its business, said it has launched legal action against "those responsible for what it believes to be a co-ordinated shorting attack."
The report from US group Gotham City Research questioned Quindell's prospects, but the company called the comments "highly defamatory and deliberately misrepresentative."
It said on Wednesday it planned a detailed rebuttal by the end of the week, and now says it is still working with its advisors on the response, which is expected later in the day. It added:
The board notes the short positions that were taken in the company's shares prior to the publication by Gotham City.
As well as the legal action, the company said it would give a report to the "appropriate regulatory authorities."
In its introduction to the report, Gotham City says:
You should assume that as of the publication date of this report, Gotham City Research stand to profit in the event the issuer's stock declines.
Ahead of its detailed rebuttal, its shares have lost another 5% or 1.25p to 23.75p.
