Private equity house Terra Firma has been left as the last remaining defendant in the long-running dispute arising from the collapse of television rental company Box Clever, with a raft of City firms having claimed roles on the saga.

A hearing in the High Court yesterday (23 January) revealed that negligence claims brought by French bank Ixis against WestLB and CIBC in 2004 had been dropped, as had deceit claims brought against WestLB in 2005.

The news leaves Terra Firma – which is facing deceit claims from both Ixis and WestLB, which is also suing the venture capital group for negligence – as the sole defendant in the case.

The dropped claims related to an overvaluation of Box Clever during a securitisation deal, which is understood to have eventually contributed to the collapse of the company.

Ixis dropped the claim of deceit against German lender WestLB without any payment required, while negligence claims involving WestLB, Canadian bank CIBC and Ixis have been confidentially settled.

Ixis is being advised on the dispute by Stephenson Harwood chief executive Sunil Gadhia, with Essex Court Chambers' Joe Smouha QC instructed as counsel.

Terra Firma is being advised by Lovells litigation heavyweight Graham Huntley, with Mark Hapgood QC of Brick Court Chambers instructed as counsel.

Simmons & Simmons finance litigation head Jonathan Kelly is advising WestLB alongside Fountain Court Chambers' Michael Brindle QC.

Litigation giant Herbert Smith advised CIBC, with senior litigation partner Kevin Lloyd leading the team and One Essex Court's Thomas Ivory QC acting as counsel.

Kelly commented: "Naturally we are very pleased with this outcome. As we have always maintained and advised WestLB, the fraud claim against them was without foundation and this has now been dropped without any payment."

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