Quindell's buyers sue to reclaim every penny spent, page-54

Look at the MCAP of both SGH and QPP at the time of the purchase (they were roughly equal).

SGH was significantly overvalued though, you can see this by looking at all and any valuation metric you care to use to compare the two companies at the time.

Please do just a little research and you will realise QPP MCAP had already dropped significantly following the note from Gotham when they claimed QPP was a company built on sand.

QPP were certainly trading below the 6x multiple that was then applied to similar UK businesses but SGH were trading at a 23x multiple.
This little fact alone might have caused AG to erroneously claim the purchase would be immediately 30% accretive to SGH.

Bottom line is SGH valued the cases and this must have taken into account an external verification of each and every figure and projection made by WTG.
Now SGH previously said they did not rely on any WTG future assumptions/projections.
Note: SGH do not raise the historic accounts as being an issue.
They also had the data and means to make their own investigations and come to their own conclusions regarding assumptions and projections.
If SGH solely relied on any single projection made by WTG they did not do the level of due diligence they claimed and were wreckless to agree to the purchase.

To attempt to transfer this blame to WTG was absolutely pittiful (if it wasn't so tragic for SGH investors I would have said laughable).
SGH have kicked over a hornets nest that will instigate years of negative headlines for them, if they intend to go to trial. I guess it may be used as a diversion for the trading position vs the staggering level of debt SGH have but I'm sure it will be short lived.
SGH is indeed a behemoth in terms of it's running costs and I view it as a negative for a company with such a debt level.

This only means that SGH will be a traders dream for the forseeable until the unsustainable debt crushes the business.

I doubt it will actually go to court and I doubt WTG will concede any ground to SGH judging by current sentiment. Also WTG can seek protection of their likely costs defending the court case (it is a protection that is only open to defendants).
This will result in SGH having to lodge a covering amount into escrow

atb
JS