The battle between Claims Direct and up to 40 of its former franchisees has intensified following an exchange of harsh letters.

And the legal wrangle looks set to deepen as 2,500 shareholders are e ...

The battle between Claims Direct and up to 40 of its former franchisees has intensified following an exchange of harsh letters.

And the legal wrangle looks set to deepen as 2,500 shareholders are encouraged to institute a group action.

Class Law partner Wynne Edwards said he had received a letter from Claims Direct last week.

"It is gratuitous and insulting and hardly conducive to a relationship where we will be able to settle the case easily," he said.

Earlier this month, Class Law wrote to the personal injury specialists on behalf of up to 40 claims managers, many of which are also shareholders.

They are seeking to recover losses suffered by factors such as an alleged breach of contract and misrepresentations.

Class Law called for a "without prejudice" meeting to resolve the matter. It has also threatened to make an application for a group litigation order if this fails.

Claims Direct chief executive Ronnie Henderson described Class Law's letter as "dreadful" and "not particularly good". He added the solicitor's decision to publish the letter on its company website was not "particularly helpful".

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