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Nicholson Graham & Jones is facing a massive legal claim of almost £9m, over advice provided to Mohamed Al Fayed on his purchase of Fulham Football club.
The claim, which is being brought by Fulham Leisure Holding - the club's British Virgin Islands parent company - was filed in the court at the beginning of April. The company is claiming "for loss arising as a result of advice provided by the defendant in relation to the purchase of an interest" in the club, according to the claim form.
Al Fayed originally purchased the club and its ground Craven Cottage for around £10m in 1997.
Al Fayed is being advised by Laurence Harris of Kendall Freeman, who also acted for the entrepreneur on Neil Hamilton's cash for questions case.
At this stage no date has been set for a hearing.
Both Harris and his client declined to comment on the action.
A spokesperson for Nicholsons said: "The claim is without merit and will be defended vigorously by us. It is in the hands of our insurers."
The firm is being defended by Will Glassey of Mayer Brown Rowe & Maw.