Ann: SGH Claim Against Watchstone, page-3

ASX Announcement
12
May
2017
Market Update:
SGH Claim Against Watchstone
Slater and Gordon Limited (ASX:SGH) confirms that its UK subsidiary, Slater & Gordon (UK) 1 Limited (S&G),
intends to file a claim against Watchstone Group plc (“Watchstone”) in the High Court of England and Wales
for approximately £600m over coming weeks.
The claim is based upon serious allegations against Watchstone and its then senior management, including
fraud, concerning the purchase by S&G of Watchstone’s Professional Service Division in 2015. The filing and
timing of the claim also take into accoun
t the recent market announcements by Watchstone that, in the face of
the claim, it intends to divest itself of its remaining assets
.
The value of that claim exceeds the net assets of
Watchstone and the monies currently held in escrow by several hundred mi
llion pounds.
As the claim will shortly be before the court, it is not appropriate to comment publically on the merits of the
claim other than to say that it will be pursued vigorously.
ENDS