A Claims Direct Action Group has been set up to recover the losses suffered by investors in Claims Direct Plc through a group action claim.
Letters have been sent to 7000 shareholders and nominee companies, and a dedicated website has gone live at www.cdactiongroup.co.uk.
Hundreds of shareholders and franchisees have already registered.
Betesh Fox & Co will represent the members of the Claims Direct Action Group in what may be the first group action on behalf of shareholders against a UK listed company.
Many investors in Claims Direct Plc purchased shares based on information provided by the company, its directors and advisers.
Similarly franchisees made substantial investments in the company based on this same information.
Judica Ltd believes this information may have been false, misleading and inaccurate, and that material facts may not have been disclosed.
Just two years after the initial sale of shares to the public, the company has been placed into administration and the shares are now worthless.
Judica intends to assist investors and franchisees in bringing a claim for compensation and, if necessary, pursue the responsible parties through the courts.
Claims Direct formally listed on the London Stock Exchange in July 2000 with shares priced at 180p. At its height, in September 2000, its share price was 353p.
In July 2002 shares are suspended 3.25p and the company went into administrative receivership.
