Law firm Slater and Gordon has been cleared of falsifying its financial records and accounts.

ASIC says it found no indication of any breach of law, and so will not enforce any penalties.

Questions had been raised about the accuracy of financial records and accounts for the period between December 2014 and September 2015.

It was also alleged that records and accounts were deliberately falsified or manipulated by employees.

“ASIC has stated in its correspondence that the information and evidence available to it following its investigation does not indicate there was a breach of law,” Slater and Gordon said in a statement to the ASX.

Slater and Gordon still faces a class action lawsuit from Maurice Blackburn, which claims the company failed to inform investors about its true financial position in good time.

Shares in the company have been hit hard, dropping from a high of almost $8 in 2015 down to just 11 cents more recently.

Shares jumped up to 14 cents after ASIC’s announcement.