One of the most expensive cases in British legal history – the epic Talco battle in which Herbert Smith advised the Republic of Tajikistan in a dispute with a group of aluminium traders – has settled midway through trial.

The settlement, which comes just four weeks into an 18-week trial, means Herbert Smith's fees – expected to hit $100m (£65m) – are likely to be reduced.

The firm fielded a team led by disputes partner Simon Bushell, with the estimated total fees also including costs for counsel – Herbert Smith in-house advocate Murray Rosen QC and One Essex Court's Neil Kitchener QC.

By April this year, the £485m (£316m) dispute had also generated combined fees of an estimated $54m (£35m) for Clyde & Co, Byrne and Partners and Magrath acting for the defendants, which included individuals as well as companies such as Ansol.

The case saw Talco – which is owned by the Republic of Tajikistan and was previously known as TadAZ – make fraud claims against nine former trading partners now based in the UK.

The settlement announced this week, said: "Tajik Aluminium Company, Ansol and Mr Avaz Nazarov, along with the other parties to English High Court action, are pleased to confirm that they have settled their disputes and that the trial in that action has been terminated with no admission of liability by any party. The terms of the settlement are confidential."

The dispute has also involved other proceedings in the British Virgin Islands against aluminium giant Rusal, which are continuing.