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Categories:Litigation / Dispute Resolution

Halliwells: Litigation looms as former partners prepare for action

1 October 2010 | By Luke McLeod-Roberts

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Former Halliwells fixed share partners are seeking legal advice with a view to suing the firm’s ex-equity partners.

One former fixed share partner pointed to “material evidence” of the firm’s minimum cashflow being “overstated” in emails from the equity partners to the fixed share partners, with the information allegedly being used as the basis for getting non-equity partners to invest in the business.

“The whole history of people being told things and then finding out it wasn’t so was widespread,” the partner told The Lawyer. “There were many versions of the truth. There was material evidence [of this but] it’s locked down in the computer system. You could go through the courts and get hold of it.”

Another former partner commented: “We’re certainly going to get independent advice, if somebody else tells us we’ve got a decent case we’ll look at obtaining the documents through the courts. I think it’s highly likely there will be litigation.”

They added: “If it came to it we’d have 50 to 100 claimants, I think it’s inevitable that you’d have a group litigation order. For a lot of people it depends on how much we end up losing.”

It is thought that the former fixed share partners are waiting to see whether Halliwells’ former landlords, who are among the failed firm’s biggest creditors, will pursue a claim before launching legal action themselves.

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Readers' comments (8)

  • John | 1-Oct-2010 4:21 pm

    We should see some dirty linen getting a very public washing!

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  • Anonymous | 1-Oct-2010 5:09 pm

    There ain't no detergent capable of properly washing out this particular lot of dirty linen!

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  • Only a matter of time | 1-Oct-2010 8:19 pm

    I think the article should clarify who made the representations. It is members of the board and certain department heads who will get sued as a result of the representations which they made.

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  • Anonymous | 1-Oct-2010 9:11 pm

    I cannot believe Salford are keeping this guy around.

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  • Game On | 2-Oct-2010 9:29 am

    What took them so long? Forced to put money in when the firm was in dire straits, the tax reserve account where their tax was kept either didn't exist or it did exist and the Board sanctioned spending the money retained to pay the FSM's tax.
    There ought to be some very concerned equity partners!

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  • Why can't people be honest | 5-Oct-2010 8:11 pm

    In reply to Only a matter of time 1 Oct @ 8.19, if we are to follow that line of thinking (i.e that it was only members of the board who are to blame), then why haven't those former equity partners, who claim they didn't know the full extent of what was going on, taken action against the board members? You would think there's a certain logic to this...... if that was indeed the truth!

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  • Anonymous | 6-Oct-2010 1:47 pm

    I expect most of the extra was spent buying the rights to the wholly rubbish poetry at the entrance to each floor - a dog barks in the bookish dark etc etc. Rhubarb.

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  • Anonymous | 14-Oct-2010 8:06 am

    they have pickled their brains

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