SYDNEY, Dec. 21 (Xinhua) -- Troubles for embattled Australian listed law firm Slater & Gordon have become worse after being ordered to produce documents relating to an investigation into the accuracy of its financial records and accounts.
Australia's corporate regulator the Australian Securities and Investment Commission (ASIC) is seeking to determine whether the law firm deliberately falsified or manipulated those financial records, or whether it or its officers committed other offences, the company said in an update to the Australian Securities Exchange on Wednesday.
"ASIC has stated that these should not be construed as an indication by ASIC that a contravention of the law has occurred and nor should they be considered a reflection upon any person or entity," Slater & Gordon said.
Slater's woes stem from the acquisition of a British services firm for 1.3 billion Australian dollars (944.36 million U.S. dollars) in March 2015, which was subsequently devalued by 879 million Australian dollars (683.53 million U.S. dollars) within 12 months.
The acquisition left the firm with 682 million Australian dollars (495.43 million U.S. dollars) in net debt and a potential class action lawsuit by shareholders following a sell off that wiped three quarters of the company's value over the past year. Slater & Gordon's market capitalization was just 96.90 million Australian dollars (70.39 million U.S. dollars) on Wednesday.
Slater & Gordon said it would comply with the notice to produce the documents later this month and in early January 2017 so the investigation may be completed "as soon as reasonably possible."
By 11:42 local time, the firm's shares had dropped 4.72 percent to 25 Australian cents (18.16 U.S. cents).
