Claims Direct sued by former boss

COLIN Poole, who made £10m from the float of Claims Direct and then presided over its plunge from grace, is suing the failed compensation specialist for more than £200,000 in unpaid legal bills.

His law firm Poole & Company is taking Claims Direct to the High Court over the bill in a move sure to provoke further anger among thousands of the company's shareholders and clients.

Poole, who was Claims Direct's chief executive, made £10m by selling one of his businesses to Claims Direct around the time of the float in 2000. It made its debut at 180p a share but the stock soon plunged, prompting him and founding chairman Tony Sullman to make a takeover bid at just 10p a share. Hard-hit shareholders viewed the offer as cynical but the pair eventually emerged with about 55% of the stock.

However, efforts to alter the group's business model failed and the company went into receivership last week, triggering fears that up to 60,000 clients could lose personal injury payments worth millions of pounds.

The shares were trading at just 3 1/4p when they were suspended, valuing the company at £6.4m.

Poole refused to comment on the legal action. But it claims in a court statement that many of the fees stem from its role in advising barristers and expert witnesses.