Quindell hits back after 'defamatory' short-selling attack

Outsourcing group Quindell has initiated legal action after an attack by a short-seller sent its share price tumbling 39%.

Earlier this week, Gotham City Research calling Quindell “a country club built on quicksand”, saying up to 80% of the group's profits were suspect, and accusing the firm of using payments from subsidiaries to inflate revenues. Gotham, which has targeted insurance company Ebix, retailer the Tile Shop and search platform Blucora in the past, wiped around £900m off the company’s market cap. But in an announcement to the stock exchange this morning, Quindell said it would release a detailed rebuttal of the allegations later today. “The board considers the publication earlier this week ...