Quindell denies losing major contract amid Gotham controversy

Outsourcer insists relationship with unnamed firm remains 'strong' despite speculation suggesting the opposite

Quindell has been forced to deny it has lost a major contract with one of its key customers.

The company said its relationship remained “strong” with an unnamed claims management firm based in the North-west of England, despite reports to the contrary yesterday.

These suggested the client had pulled out of a deal for Quindell to handle personal injury claims on its behalf. Shares in the company rose more than 9 per cent to 62.5p following the announcement.

Quindell has had a torrid few months since almost £1 billion was wiped off its value after a damning note by US company Gotham City Research. Quindell subsequently won a legal challenge against Gotham.

This month, founder Rob Terry was forced to quit after becoming embroiled in a controversial share loan deal.