Ann: SGH advises Watchstone Group Plc of claim under SPA-SGH.AX, page-215

I don't know what was in the Warranties but reading Note 9.3.2 of SGH's financial statements (released 3 weeks ago) you could say there was plenty there to be considered as a claim against the warranty including:

"The initial accounting for the acquisition of SGS had previously been provisionally determined. The necessary fair valuation of consideration and net assets acquired has now been finalised and is reflected in the amounts detailed above. The respective changes to reported provision fair value of net assets acquired are:
• $31.4m reduction in the fair value of work in progress;
• $93.5m decrease in the fair value of trade and other receivables and other assets; ...."

and

wrt to "accounts" :

"On 5 August 2015, Quindell Plc, the vendor of SGS, published qualified financial statements in which the current directors and auditors of Quindell Plc explained, inter alia, that relevant information relating to transactions entered into by the former directors that could impact on the accounting, intention, commercial purpose or value of certain transactions was not available to them.

On 5 August 2015 the Serious Fraud Office in the United Kingdom advised that it had opened a criminal investigation into the business and accounting practices of Quindell Plc. "

If there was a chance of a claim against the warranty, SGH would be negligent not to have pursued it given what has transpired.

Regards

SP