Accountancy firm Smith & Williamson is on the brink of suing several law firms in its capacity as liquidator of Invaro, the failed personal injury claims-handling company.


The liquidator claims the firms owe money to the creditors of Invaro.



The claims handler, which went bust in June 2004, gathered personal injury cases which it then passed on to its panel solicitors. As part of the deal, Invaro covered various costs for the firms, such as medical examinations and insurance premiums, which were to be recouped with interest once claims were settled.



Tony Murphy, director of restructuring and recovery at Smith & Williamson, said: 'We will give various remaining solicitors the opportunity to settle, following which we will issue proceedings.



'The total debt recovery was, at the time of liquidation, estimated to be around £80 million. Whether we will get that back I couldn't say, but it is substantial sums of money.'



A Serious Fraud Office spokeswoman said its investigation into the collapse of Invaro was ongoing and that no-one had been arrested or charged.



Anita Rice