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BETFAIR FOUNDER IN MULTI-MILLION POUND LITIGATION
Thursday September 15,2011 : Davies suing his lawyers over shares dispute
One of the founders of internet gambling group Betfair, Mark Davies, is suing his erstwhile legal representatives, alleging that law firm Speechly Bircham cost him millions of pounds when he tried to sell shares in the group.
Davies left Betfair in July 2010 but is in dispute with Speechly Bircham over the sale of Betfair shares, claiming damages of more than GBP 4 million as a trustee of two family trusts that held stakes in the gambling company.
According to a High Court writ reported by the Daily Mail over the weekend, the trusts had instructed Speechly Bircham that they wanted to sell their shares after the Betfair IPO on the London exchange last year, when the price was GBP 13 a share.
But in October 2010, when the shares were trading at GBP 15.50, Davies was told the shares could not be sold because they had not been registered properly, says the writ. Betfair shares are now worth only GBP 7.05.
Both Davies and Speechly Bircham declined to comment when approached by the newspaper.
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