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UK's Quindell says Gotham City Research report defamatory

Published 22/04/2014, 16:26

(Reuters) - Consulting and outsourcing services provider Quindell Plc rejected as "highly defamatory" and "deliberately misrepresentative" comments by short-seller Gotham City Research LLC that questioned its revenue model and profit quality.

Shares in the company, which provides services to the insurance and telecom industries, fell as much as 56 percent, wiping out 1.4 billion pounds of market value.

Quindell said it was consulting its legal advisers on what immediate action could be taken against Gotham City Research, which says on its website that it may have long or short positions in the companies it covers.

Gotham City Research made its allegations in a report published on its website on Tuesday.

Quindell, who lists Aviva Insurance Plc , British American Tobacco Plc and Royal Mail Plc among its customers, said it would issue a more detailed response before the end of the week.

At 1610 BST, the company's shares were down about 35 percent at 25.73 pence.

(Reporting by Esha Vaish in Bangalore; Editing by Ted Kerr)

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