Edwin Coe is being sued for breach of contract and negligence in a claim reportedly worth over £11m.

The claim was filed in the High Court earlier this year (11 February) by former clients Valleymist and shareholder Clive Richard Davis, who claim that Edwin Coe failed to advise them adequately between 2003 and 2005 in relation to transactions involving shares of FirstCity Insurance Group (FCIG).

The claimants allege that as a result of being poorly advised on a share transaction conducted in 2003 the company was vulnerable to a challenge under the Companies Act 1985.

FCIG turned to Barlow Lyde & Gilbert (BLG) on the matter, advising FCIG to carry out a second transaction in 2004, led by Edwin Coe, to "cancel and replace" the 2003 transaction.

However, the claimants allege that Edwin Coe was negligent in the advice it gave in the second transaction, which led to a third and final transaction in 2005 to resolve the position.

The claim form states Edwin Coe gave no prior advice "as to the steps that would be sensible for the claimants to take in order to ensure… that the 2003 transaction was in all respects lawful".

Kennedys is advising Edwin Coe while Karim Mohamed, head of professional negligence at Sussex-based law firm Mayo Wynne Baxter, is advising the claimants with 4 New Square Nicholas Davidson QC instructed as counsel. Both Edwin Coe and the claimants declined to comment as the matter was ongoing.