Tribal Group plc (LON:TRB) shares plunged in early trading after the firm was notified of a claim against it for royalty payments by a software platform provider that could total £30mln.
The education software firm, which had alluded to an impending claim in a business update of Thursday, said the software provider had claimed that Tribal failed to account properly for royalties under the terms of a value-added reseller agreement from April 2000, and as such had breached the terms of that agreement.
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While a specific amount had not been claimed, the letter received had estimated losses at between £15mln and £30mln.
Tribal said it had regularly made royalty payments over the period covered by the claims and it did not consider the claims justified, adding it would defend them “vigorously”.
Shares were down 12.4% at 70p.