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 equity to fixed-share partners, with the information allegedly being used as the basis for getting non-equity partners to invest in the business.
“There was a history of people being told things and then finding out it wasn’t so,” 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 documents through the courts. It’s highly likely there’ll be litigation.
“If it came to it we’d have 50-100 claimants – 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.