Freshfields Bruckhaus Deringer said on Thursday that it had reached a settlement with the liquidator of an insolvent bank, who sought €95 million ($105 million) from the Magic Circle firm over advice that allegedly circumvented German tax laws.

The liquidator, Michael Frege, announced at a Maple Bank creditors' meeting on Thursday that he had settled his claim against Freshfields, recovering €50 million ($55.3 million) for creditors, German news outlet Handelsblatt first reported.

"A dispute regarding a potential liability claim stemming from a mandate completed several years ago has been resolved," Freshfields said in a statement. "The parties have agreed after intensive discussions that not only the claim for payment of €95 million, but also additional claims will be withdrawn. We are convinced that our advice always complied with applicable law."