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Contractors for Justice (C4J) Tonight Executes a Proposed Class Action Order (GLO) against Purple Brick on behalf of a former agent who was hired as a self-employed real estate broker against Purple Brick. announced that it is stepping up its efforts to It may block the sale of online realtors. Given the current financial situation, the outcome could be disastrous for the company.
The premise of the claim is that, by law, these self-employed persons were effectively employed for the purposes of holiday benefits and pension contributions owed by the company to the individual. This claim covers up to 20.7% of each person’s gross income.
C4J today compiled two letters related to Purple Brick’s “self-employment” claims, which you can read below.
The first letter was written to Helena Marston, CEO of Purplebricks. This indicates that the online estate agent was given six days’ notice to begin settlement negotiations on the proposed C4J claim on behalf of 192 claimants in a claim worth £8,439,673.
The amount being pursued is the amount, with interest, that C4J is claiming against 192 people in connection with allegations that PB failed to pay holiday benefits, car allowances, and pension contributions to its self-employed employees. .
The argument is that these self-employed claimants were in fact employed before the law. Failure to do so will result in C4J filing a lawsuit in the High Court beginning at noon on June 1st.
The second letter, a related correspondence, is separate. This is a letter C4J sent to its takeover panel today asking the panel to intervene in the proposed sale to Strike and (for now anyway) to prevent the panel from completing.
This is based on the legal basis that Strike issued a “not willing to bid” notice on May 10 under section 2.8 of the Takeovers Act. After that, they are legally prohibited from submitting an offer within six months from that date. As a matter of fact they have submitted an offer which is therefore considered illegal and C4J is seeking its cancellation.
“Purple Bricks continues to wriggle utterly helplessly on the hook, so this is truly a double blow,” said Russell Kwark, C4J’s deputy public relations officer.
He added, “Purple Brick not only faces an aggressive escalation of litigation from the High Court proceedings starting next Tuesday afternoon, but if it: We also face the devastating prospect of having to postpone for six months.” Takeover panels will enforce Rule 2.8 as a matter of course.
“It is doubtful whether Purple Brick can survive for another six months given the cash and overheads that are being drained. .”
Purple Bricks received a takeover offer from a major shareholder today, a week after announcing an agreement to sell its business and assets to online rival Strike for £1.
The struggling online real estate broker said the new offer came from investor Reklam Holdings, which had previously criticized the group’s leadership.
The proposal is to acquire the entire outstanding and yet to be issued share capital of Purple Bricks at a price of just 0.5 pence per share.
But the company said it would not recommend Reklam’s proposal to shareholders.
“The board does not currently believe the proposal reflects an improvement to the proposed sale of the business and assets to Strike,” Purplebricks said.
Last year, Reklam, which owns more than 5% of the beleaguered company, called for the dismissal of chairman Paul Pindar and the appointment of real estate industry expert Harry Hill.
A spokesperson commented: “Rekram has been working with the Board of Purple Bricks for nearly a year to avoid the current situation and our proposal is not a vague promise from a discredited board, but a sure cash flow to our shareholders. I believe it gives.” There will be something more in the future. “
Character 1:
Helena Marston
CEO
Purple Brick PLC Cranmore Place Cranmore Drive Shirley
Solihull
West Midlands B90 4RZ
May 26, 2023
purple brick plc
From previous correspondence and legal actions, I believe you are aware that our firm works for your current and former employees. Please receive this document as a formal letter before claiming.
We represent approximately 192 individuals who may have been employees rather than self-employed throughout their careers. Following a report from HMRC, your company has applied his PAE to your employees from September 2021, by which he will be liable for all your liability from 2015 and any outstanding claims from that date onwards. They are not exempt.
For the avoidance of doubt, the claims we are bringing against your company relate to unpaid holiday pay, car allowance and pension. These charges total £6,000,237.83, together with outstanding interest of £2,439,436.05, for a total of £8,439,673.88 as at 25 May 2023.
We intend to file a lawsuit against your company in the High Court without delay.
However, we would appreciate the opportunity to resolve this issue, especially in view of the current sales negotiations. That being said, we do not intend to penalize our own customers by unnecessarily delaying their position. You are well aware of our concerns and the terms of our claims, especially from recent litigation. So from today he will give you 6 days to agree to settlement negotiations, but if no agreement is reached he will proceed without further mention to you.
We understand that this is less than the 14-day general minimum period set for CPR, but if you knew in advance and your sale would disenfranchise our customers, We are reassured that the court will allow this in these exceptional circumstances of risk.
Therefore, please agree to a settlement by 12:00 on June 1st. If you do not agree, we will commence legal proceedings without further reference to you.
Aidan Roy
legal director
C4J
Letter 2:
Takeover Panel One Angel Court London
May 26, 2023
Greetings
Purple Bricks PLC and Strike Ltd. {Co. Number: 07622707)
We are writing regarding the proposed sale of Purple Bricks PLC to Strike Ltd. (above). It is our understanding that this possibility will be presented to the shareholders of Purple Bricks PLC at the shareholders meeting on June 2nd.
It should be pointed out that the Company is not a party to this transaction. However, since 2015, we have represented approximately 192 clients in disputes over their employment status for failing to pay holiday pay and other legal requirements across their workforce, resulting in claims worth £8,439,673.88. .
Our concern is that this sale may disqualify our clients.
Therefore, we encourage you to have your own Acquisition Code, especially Section 2, and especially Section 2.8. From that document, we understand that his May 10 declaration to strike triggered Section 2.8 of the Code in that no other declaration could be made within six months. Yet we are here.
Therefore, we should openly, on the sidelines, ask if the panel believes that all is well and that the client’s position is therefore protected.
We look forward to hearing from you. If you have any other requests, we are always happy to help.
Very truly yours
Aidan Roy
legal director
C4J
Lomond Completes Acquisition of Purple Bricks Portfolio
