KPMG administrators drop £50m Lexi claim

ADMINISTRATORS from KPMG have dropped a £50m claim from Manchester law firm Pannone.

The claim was made against the law firm for its role as adviser to insolvent property finance business Lexi Holdings.

Administrators had alleged that Pannone had allowed Shaid Luqman to continue to run Lexi while it was at risk of collapse. Lexi went into administration in 2006 with more than £100m of debts.

Pannone had strongly denied the claims. Pannone partner Simon Pedley said “common sense had prevailed”, reported the Manchester Evening News.

KPMG said it had agreed a settlement.

“This was a commercial decision, which will allow us to focus on the ongoing administration.”

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