April 25 Quindell Plc, a consulting and
outsourcing services provider, said it initiated legal action
against short-seller Gotham City Research, which published an
allegedly damaging research report on the company earlier this
"Legal action has already been initiated by the company
against those responsible for what it believes to be a
coordinated shorting attack and reports are also being made on
this activity to the appropriate regulatory authorities,"
Quindell said in a statement.
Gotham City Research questioned Quindell's revenue model and
profit quality in a report on its website on Tuesday, wiping off
more than half of Quindell's market value.
Quindell, which provides services to the insurance and
telecom industries, said short positions were taken in its
shares prior to the report being published.
Quindell said it would issue a detailed response later on
Quindell shares rose 4 percent to 26.06 pence in early trade
on the London Stock Exchange on Friday.
(Reporting by Noor Zainab Hussain in Bangalore; Editing by