Freshfields Reaches €50M Settlement Over German Tax Advice
Maple Bank's liquidator sought €95 million over advice the firm gave on so-called "cum-ex" transactions. Freshfields says it never violated the law.
August 29, 2019 at 04:42 PM
2 minute read
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after intensive discussions that not only the claim for payment of €95 million, but also additional claims will be withdrawn.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."
Frege sued Freshfields in April 2019, alleging the firm improperly advised Maple Bank on the legality of so-called "cum-ex" transactions. The transactions, also referred to as dividend stripping or dividend arbitrage, flourished in Germany in part thanks to a loophole in the country's tax code that allowed companies to claim tax refunds on dividend taxes that were never paid.
The loophole was closed in 2012, and the government investigated numerous financial institutions thought to be participating. Among them was Maple Bank's German arm, which collapsed in 2016 after it struggled to pay back taxes it owed.
Neither Frege, an insolvency and corporate restructuring partner at CMS Hasche Sigle in Germany, nor his counsel at Linklaters were immediately available for comment.
Freshfields is represented by Frankfurt-based Arnold & Porter Kaye Scholer partner Michael Weigel.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAshurst Beijing Chief Representative Leaves for New York Boutique Sterlington
Baker McKenzie, Norton Rose & Other Top Litigators Foresee Rise in AI, Data & ESG Disputes
Axiom-Ince: SFO Charges Five, Including Former Head, Following Investigation
3 minute readSDT Upholds SLAPP Claim Against Osborne Clarke Partner Advising Nadhim Zahawi
3 minute readTrending Stories
- 15th Circuit Overturns OFAC’s Tornado Cash Sanctions
- 2The Forgotten Ballot: Expanding Voting Access for Incarcerated Populations
- 3Data Breaches, Increased Regulatory Risk and Florida’s New Digital Bill of Rights
- 447. If Clients Won’t Buy Your Knowledge, What Will They Buy?
- 5Law Firm Office Growth in Pennsylvania Lagged in 2024
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250