Quindell PLC (LON:QPP)’s founder and chairman Rob Terry resigned Tuesday, adding to a tumultuous few months for the insurance claims processor which saw the company shedding over 2 billion pounds ($3.1 billion) of its market value.
However, Terry will remain as a paid consultant “to ensure an orderly transition”.
Currie to become new interim executive chairman at Quindell
Quindell PLC (LON:QPP) named David Currie, the former head of investment banking at Investec, as non-executive interim chairman with immediate effect and initiated a process to find a new chairman.
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Interestingly, for a second time, Terry has been ejected from an insurance company that he has founded. In 2003, he was forced from the board of Innovation Group, after that company also suffered a similar share price plunge to Quindell. David Currie was an adviser to Innovation Group.
The insurance service provider has been facing turmoil for the past few months.
As reported earlier this month, Terry and two other board members announced that they had bought shares in Quindell PLC (LON:QPP) in a complex multi-party transaction.
However, in a damage control mode, Quindell disclosed subsequently that Terry and the two other directors loaned 10.4 million shares to US-based Equities First Holdings, receiving nearly £9 million in cash net of fees, though so far only £2.1 million has been invested in the new shares. Terry and finance director Laurence Moore had committed to using all the remaining funds towards further share purchases, but non-executive director Stephen Scott will also use the funds to “cover certain other tax liabilities”.
In a statement today Terry said: “I am clearly disappointed and sorry that events turned out as they did”. He added that he had acted “with the best of intentions”.
Two others directors will also leave
In a statement today, the company announced Laurence Moore has also agreed to step down from the board after the 2015 annual meeting and leave Quindell a year later. The other independent director Steve Scott will leave immediately.
In its statement, the board indicated that it ‘remains confident’ in the future prospects of the business.
Yesterday, the insurance claims processor announced that Canaccord Genuity Limited resigned as one of its joint brokers, and the news sent Quindell’s shares plummeting as much as 24%. In April, U.S.-based Gotham City Research released a scathing report suggesting that the insurance claims processor’s reported profits are materially incorrect and its shares are worth no more than 3 pence per share.
Quindell PLC (LON:QPP)’s shares were exceptionally volatile Tuesday, as its shares rose over 21% before swinging to a 15% decline relative to Monday’s close.