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Exodus at Quindell

Three of Quindell's directors are stepping down after engaging in a controversial share deal.
November 19, 2014

Even quixotic investors will be weary of Quindell (QPP). In the latest twist at the insurance claims processor, founder and chairman Rob Terry and two other board members are resigning after taking part in a controversial share-dealing scheme.

IC TIP: Hold at 50p

Short-selling attacks, a failed move to the FTSE 250 and concerns about Quindell's accounting, cash generation and corporate governance have sent its shares down 93 per cent since April. The latest brouhaha surrounds the three directors' entry into a sale and repurchase agreement that was initially framed as a share purchase. Moreover, joint broker Canaccord Genuity and corporate communications firm Redleaf Polhill have quit their roles at Quindell.

This isn't a first for Mr. Terry. In 2003 he was ousted from another company he founded, Innovation Group, after it similarly rocketed upwards before crashing down to earth. He will now serve as a paid consultant at Quindell, while ex-Investec executive David Currie has been appointed interim executive chairman.