Thirteen lawyers who worked until February at Fidal, France's largest law firm, have turned their backs on the legal arm of Big Four firm KPMG to return to their former home, according to a person close to the matter.

Behind the about-face is an ongoing legal tussle between the two organisations that stems from the original mass departure, when 144 lawyers, including 26 partners, left Fidal early this year to join KPMG. The returning team – which includes four VAT specialists, five corporate income tax lawyers, and four with transfer pricing expertise – were part of that mass exodus. 

The departures, which marked one of the largest law firm raids in recent years, prompted Fidal to take legal action against KPMG. That dispute is ongoing, according to a person with knowledge of the situation.

The two firms were formerly close collaborators in the French market, having signed a non-exclusive partnership agreement in 2011. However, the relationship broke down in 2018. 

Following the raid, the two firms disagreed over whether KPMG had agreed to a non-poaching agreement scheduled to last until next year. Fidal claimed this was the case, while KPMG stated that Fidal had rejected a number of proposals it made concerning the future relationship of the two firms.

During the summer, Fidal and KPMG both hired French employment law specialists to advise them on the dispute, with Fidal choosing Darrois Villey Maillot Brochier and KPMG turning to Veil Jourde.

Fidal is asking for compensation from KPMG for damage resulting from KPMG's recruitment of Fidal's lawyers, including damaged image, loss of turnover, disrespect towards a contract, and unfair competition.

Fidal declined to comment. No one from KPMG was immediately available to comment.

KPMG, which has expanded its legal offering globally during the past year, recently expanded in eastern Europe through a takeover of Romanian technology law specialists Fernbach & Partners.

The company currently has approximately 1,850 lawyers in Europe, the Middle East and Africa, 300 in the Americas, and 250 in Asia-Pacific. In the summer, KPMG's global head of legal services, Stuart Fuller, announced that the firm was planning to grow significantly in the Americas and Asia.

Fidal currently employs about 1,450 lawyers. It has offices across France and also in London, Sao Paulo, Abidjan, Ivory Coast and Shanghai. In 2014, it agreed to a strategic alliance with U.K. firm Mills & Reeve.

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