SSB Law Sheffield: Ex-manager slams 'cesspool' practices after firm goes bust owing £205m

A manager at SSB Law in Sheffield has lifted the lid on a "cesspool" of bad practices that dragged the company under owing £205m.

The worker said the 'no win no fee' specialist went "all in" on cavity wall compensation claims and took out two huge loans in September and October, which he believes were to keep the company afloat.

Thousands of cavity wall cases were acquired in 2021 from another law firm - Pure Legal - after it went bust. But the work was dogged by 'meritless' claims and stalled appeals.

He said: "I don’t know if it was bravado on the part of the directors. But it was quickly clear the new cases were a bit of a dead duck. It’s horrifying to read what clients are now going through."

Earlier this month SSB collapsed into administration with the loss of 192 jobs. An administrators' report reveals it owed £205m. One of the largest amounts is £63m to Katch Fund Solutions which made the two loans shortly before disaster struck.

The ex-staffer said SSB relied on leads from claims management companies who signed up householders on the doorstep. Many believed there was no financial risk, but insurance to cover the costs of losing has turned out to be "not fit for purpose".

They added: "We don’t know what was said on the doorstep. Perhaps some clients didn’t understand and didn’t read all the small print when they heard it was 'no win no fee'. 

"Some of this smells like a cesspool. I would be very reluctant to work for firms in this area of emerging law. I’m sure the directors started out with the best intentions but it  became a desperate money grab. I hope the SRA fully investigates and takes appropriate action."

Administrator FRP Advisory says other big creditors include Opportunity S.A. which put forward £42m of funding against cavity wall claims, New York-based Catalur Capital is owed £18m and AFS £24m.

Staff are owed £237,000 but are unlikely to receive anything. Sheffield City Council is owed £205,000 while Sheffield United, whose stand is sponsored by SSB Group, is owed £97,000.

FRP says it sold 42,708 cases to other law firms. Manchester-based JMR Solicitors has taken on the cavity wall case files.

Amjad Ahmed of Bradford received a shock demand for £11,880 in November when his cavity wall claim was dismissed and he was told his 'after the event' insurance did not apply.

He says he only launched it after being reassured it was 'no win no fee'.

"Someone came to the house and got me to sign a number of documents. I even asked at the time 'who is this company and what is their record?' I was told they are reputable and have a lot of ongoing claims for cavity wall and are very hopeful they will be reaching a positive outcome very soon. We know that was not the case," he said.

The Solicitors Regulation Authority is looking into SSB Law after scores of clients were ordered to pay when cases collapsed.

Directors could be hit with ‘unlimited’ fines if investigators prove misconduct over ‘no win no fee’ cases.