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Why Slater & Gordon Limited's share price collapsed 53% today

Slater & Gordon Limited's (ASX:SGH) share price collapsed more than 53% in a matter of minutes.

Posted by
Ryan Newman (TMFNewmy)
Ryan Newman (CFA) is the Director of Research of The Motley Fool Australia, and Portfolio Manager for the Pro and North Star services. Ryan’s interest in investing and stocks began at a young. His journey with The Motley Fool started first as a member but when the company first came to Australia he joined the team as one of our writers. Recognising his investing talent and passion, it wasn’t long before he was approached to join the investing team as a research analyst on Pro. Ryan is passionate about learning and continual development. He earned his Chartered Financial Analyst (CFA) designation in 2022, and has completed his Bachelor of Accounting and his Graduate Certificate of Corporate Finance. Ryan loves spending time with his young family as well as non-fiction reading, catching the latest movies and following his sports team, the St Kilda Saints (AFL).
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If you own shares of Slater & Gordon Limited (ASX: SGH), I urge you to look away now.

Shares of the legal eagle were trading roughly 8% lower shortly before noon, before getting absolutely poleaxed.

They fell more than 53% to just 90 cents and have fallen 71.6% over the last week, down from $3.17 per share.

Source: Google Finance
Source: Google Finance

Today's share price collapse followed a market-sensitive announcement regarding proposed changes by the UK Government which, if implemented, would impact on the rights of people injured in road traffic accidents.

Slater & Gordon doesn't expect the changes to impact its earnings guidance for this year, but it very well could in the future.

Fellow law firm Shine Corporate Ltd (ASX: SGH) has also fallen more than 6% for the day.

Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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