Settlement Secured in alleged Professional Negligence Claim against Solicitors regarding Company Sale
The Case
Our clients pursued a multi-million-pound claim against their former solicitors, who had advised on and drafted the Share Purchase Agreement (SPA) relating to the sale of their former company, a highly successful e-commerce business.
Despite the buyer agreeing that the relevant Earn Out target had been achieved, they failed to make the Earn Out payment. The claim advanced allegations that the solicitors had been negligent in drafting the SPA and had failed to adequately protect our clients’ position on the sale.
Our clients’ losses were further compounded, it was alleged, when the same firm later advanced litigation against the buyers which did not succeed.
This case highlights the critical importance of ensuring proper expertise in both corporate transactions and subsequent litigation advice.
The Challenges
The case advanced two main allegations of negligence, the first relating to the corporate transaction advice and the second regarding the subsequent litigation advice.
Specialist input was required from counsel, forensic accountants, and corporate finance experts to support the claims.
How We Helped
FS Litigation was uniquely placed to pursue this high-value, complex litigation on a fully contingent (“no win, no fee”) basis.
Our team worked alongside leading specialist counsel, forensic and corporate experts, and other trusted advisers to ensure our clients had the strongest possible case.
This matter is one of many complex claims our team has advanced alleging professional negligence by other solicitors.
The Outcome
The matter was successfully settled at a mediation, on confidential terms and without any admission of liability by the defendants. The allegations were not determined by the court.