Manchester law firm Rowe Cohen is one of almost 600 personal injury firms to have agreed a settlement in their high-profile litigation following the collapse of The Accident Group (TAG).

Insurers Winterthur and National Insurance Group (NIG) had brought the negligence claim against TAG, Rowe Cohen and another 597 firms in 2005 following TAG's administration in 2003 but a settlement was reached in the last few days.

In a prepared statement, the parties said: "Winterthur, NIG, Rowe Cohen and the vast majority of the panel solicitors have agreed settlement terms in the litigation arising out of the TAG Scheme, including the separate proceedings relating to recovery of the AIL fee. All parties are pleased that the litigation has come to an end."

Winterthur had alleged that TAG's referral firms negligently passed to TAG cases that would fail. The insurers had been seeking to recover the £70m they lost through underwriting TAG cases. It had been feared that a successful claim could have caused many of the firms to close.

Reed Smith Richards Butler litigation partner Richard Spafford acted for the insurers bringing the claim.

Henmans professional indemnity partner Clive Brett advised Rowe Cohen.

A number of firms were involved advising groups of defendant firms. Berrymans Lace Mawer head of professional indemnity Charlotte Capstick and Bond Pearce litigation partner Gary Oldroyd advised some of the firms.