London Capital chief in U-turn over glitches
London Capital's chief executive Simon Denham was forced into a humiliating volte-face yesterday, warning the spread betting firm could be forced to fork out £7.7m by the financial ombudsman.
The group, which owns the Capital Spreads brand and operates third party sites for Paddy Power and PartyGaming, had last month promised that glitches in its system were not financially material.
The development wiped 20% off the shares (down 19p to 80p).
The Ombudsman ruled LC had to repay £100,000 to a client who lost funds on a currency gamble. The ruling could pave the way for 114 other claims.
The problem was connected to a site LC operated for the now defunct UK Integrity Group which meant clients were told they had more funds than they really did.
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