MFS-linked company reportedly sues bridging law firm

London Bridging Limited (LBL), one of nine SPVs through which collapsed lender Market Financial Solutions (MFS) allegedly incurred losses, has allegedly launched legal proceedings against law firm Sriharans Solicitors, according to reports in The Lawyer.

A Sriharans spokesperson commented: “We confirm that Sriharans Solicitors has received notification of proceedings issued by London Bridging Limited (LBL).

“We are concerned that proceedings were issued before the expiry of the period provided for our response to the pre-action correspondence.

“We have raised our concerns regarding the timing of the proceedings and compliance with the applicable pre-action procedures.

“By way of background, Mr Paresh Raja was, during the relevant period, the sole director of both London Bridging Limited and Market Financial Solutions (MFS).

“The two companies subsequently entered administration, with separate administrators appointed in respect of each company.

“Our firm disputes the allegations advanced by LBL and intends to defend its position through the appropriate legal process.

“Sriharans Solicitors takes its professional and regulatory obligations seriously and remains committed to upholding the rule of law and the proper administration of justice.”

The law firm said that the matter was being dealt with by solicitors and that it would not be appropriate to comment further at this stage.

B&C contacted the administrators of LBL, FRP Advisory, but did not receive a comment by time of publication.

Some 86% of respondents to a recent report said the MFS collapse was avoidable and rooted in due diligence failures.