Slater & Gordon is being investigated by regulators in Australia, sending the listed firm's share price through the floor.

The Australian firm and its auditors Pitcher Partners are being probed by the Australian Securities and Investments Commission (ASIC) in relation to accounting errors that occurred between 2012 to 2014. Slater & Gordon has acknowledged that cash receipts from customers were overstated, meaning the firm didn't convert as much work-in-progress into cash as the market had been led to believe. The stock market has reacted accordingly: shares in Slater & Gordon plummeted 40% in five days of trading on the Australian Stock Exchange. That's a nasty fall for a personal injury firm.

An accident in Slater & Gordon's accounts department. How it might have looked.

Sydney hedge fund manager VGI has compiled a dossier which heavily criticises Slater & Gordon's accounts, raising 10 key 'red flags' against the firm's accounting practices. It also expresses concerns over the firm's buying spree, in particular the recent purchase of troubled insurer Quindell's PI business. Quindell itself is currently under investigation by the Financial Conduct Authority (FCA).

Adding to the firm's woes, a source tells RollOnFriday that Slater & Gordon UK is also having continuing problems with its new IT system. Earlier this year it rolled out "Claimball" “Mattersphere" in an attempt to integrate the new firms it has acquired. But apparently the system is hanging several times a day and is far slower than the systems it replaced. It's not the first time the firm has suffered IT problems  and a spokeswoman said "With any change of this size there will be challenges for staff but they have been incredibly supportive during this transition". She added that "we want to thank them for their patience and hard work during the process".