Clifford Chance has pledged to defend itself 'robustly' after being joined in a £130m negligence action brought by US bank JP Morgan Chase against German transport company BVG.
The magic circle firm described the claims as 'misconceived and entirely without merit'.
BVG is accused of having spread risk by insuring a deal through a collateralised debt obligation (CDO) in 2007. BVG has joined Clifford Chance to the suit, which alleges that Clifford Chance gave negligent advice in relation to the derivatives transaction.
A spokeswoman from Clifford Chance said: ‘We do not consider that BVG should have joined us to this action. We believe the claims against us are misconceived and entirely without merit and we will continue to defend our position robustly.’
The case is expected to be heard in the High Court later this month. Clyde & Co partner Richard Harrison and David Foxton QC are acting for Clifford Chance.
In 2011 JP Morgan won a challenge at the European Union’s highest court to have the CDO dispute heard by UK courts.