Colin Poole, founder of failed ambulance chaser Claims Direct, is preparing to launch another version of the business, it has been reported.

Claims Direct is facing a class action from hundreds of people who invested in the company in what could be the first group legal action registered on behalf of shareholders against a UK listed company.

Poole made an estimated £10m from selling his shares in the company before it went into administrative receivership last month.

From an all-time high of 353p in September 2000, the shares lost value and are now worthless.

Claims management company Judica said it received "hundreds" of responses after writing to 7,000 shareholders and franchisees proposing a group action.

It said the company may have misled investors when it floated two years ago.