The company has seen more than £1bn wiped off its valuation this year after research firm attacked its profits

Quindell’s share price fell 12.4% during trading yesterday despite its profits quadrupling in the first of 2014.

The shares closed at 184.25p yesterday, down from Wednesday’s closing price of 210.25p.

In the first six months of 2014, Quindell’s pre-tax profits jumped by 292% to £153.7m (H1 2013:  £38.2m), while its revenue climbed by 119% to £357.3m (H1 2013: £163.3m).

The insurance outsourcer has seen more than £1bn wiped off its valuation this year after US-based short seller Gotham City attacked its profits, acquisitions and sales back in April.

Quindell has since launched a defamation suit against the research firm and has also started legal proceedings against a blogger that repeated the claims.