Linklaters, Deloitte and former Arsenal shareholder Lady Nina Bracewell-Smith have reached a settlement in their dispute over the latter's sale of her stake in the Premier League football club to current majority owner Stan Kroenke.

Bracewell-Smith sued the magic circle firm and the Big Four auditing giant for professional negligence, following their advice on the disposal of her 15.9% stake in the Premier League club to Kroenke's company, Kroenke Sports & Entertainment (KSE), in 2011.

Bracewell-Smith had claimed that the advice to site the loan notes in the UK, as opposed to offshore, exposed her to losses of more than £10m that might have been avoided. She subsequently alleged that Linklaters was negligent and in breach of its duty of care, following which the two organisations pointed the finger at one another.

Linklaters had argued that it "was not instructed to and did not advise the claimant on whether she should sell her shares to KSE rather than anyone else", while Deloitte countered that it "did not actually know that the loan notes would be sited in the UK and did not have any duty to check", but that Linklaters "knew or should have known", and that it had "specifically made Linklaters aware of this requirement".

The Linklaters lawyers referenced in the lawsuit are former partner Ian Bagshaw and ex-managing associate Stuart Boyd, both of whom have since left the firm and are now partners at White & Case and Kirkland & Ellis respectively.

The magic circle firm instructed Clyde & Co on the dispute, with Rhodri Davies QC and Conall Patton of One Essex Court as counsel, while Deloitte turned to US firm Reed Smith and Simon Salzedo QC and Tony Singla of Brick Court Chambers. Bracewell-Smith, meanwhile, took advice from West End law firm Gordon Dadds.

The value of the settlement was not disclosed.

Both Linklaters and Deloitte declined to comment.