Posted Oct 27, 2010 12:54 pm CDT
A publicly owned law firm in Australia has gobbled up a troubled personal injury law firm, paying $35 million for the acquisition.
Slater & Gordon has acquired the controversial Keddies law firm, known for charging clients $60 for a welcome letter and $49 for reading a thank-you card, the Sydney Morning Herald reports. Slater & Gordon is the world’s first publicly owned law firm.
Many Keddies’ clients had complained of routine overcharges, according to a 2008 investigation by the Sydney Morning Herald, the newspaper reports. Keddies is facing 31 legal actions filed by just one lawyer on behalf of disgruntled clients.
The lawyer, Stephen Firth, told the newspaper that most of the cases related to overcharging. “It wasn’t uncommon for people to lose most of their settlement in legal fees charged by Keddies,” he said.
More on Slater & Gordon:
ABAJournal.com: “World’s 1st Public-Owned Law Firm Posts Another Big Profit”
Legal Rebels: “Andrew Grech: Taking Stock”
ABA Journal (2007): “Selling Law on an Open Market: The world’s first publicly traded law firm ignites debate”