Investors sent shares in Earthport (EPO) down 30 per cent after the cross-border payments specialist revealed that a customer reneged on paying its bills. Management is pursuing regulatory and legal action, but the group could lose up to £5m.
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Baydonhill - one of Earthport's subsidiaries - made payments on the client's behalf as part of a long-standing agreement. But the customer failed to honour the deal. Investigations suggest the customer "intentionally engaged in fraudulent activity" and may be insolvent - it recently filed to appoint an administrator.
