Jun 16, 2022
On 27 April 2022 Cavendish IP Solutions acquired a claim against Directors from one of its IP partners.
- After several failed tax avoidance schemes, the Directors did not make adequate provision for the tax that was due and continued to take substantial dividends from the company.
- The company went into creditors voluntary liquidation in February 2013 (yes 2013!). Prompted by HMRC, the largest creditor, the liquidators instructed a firm of solicitors to review potential claims.
- Due to the lack of progress, seven years later, in 2020, new liquidators were appointed at the behest of HMRC to pursue claims in relation to the failed tax schemes.
- The Directors had been written to on numerous occasions by both the liquidators and the solicitors. In response they always denied any responsibility.
- Upon getting involved with the claim in April 2022 Cavendish IP Solutions conducted meticulous forensic examination of the records and related correspondence. Leveraging their Accounting expertise they re-stated the financial records, which clearly showed the extent of the deficiency in reserves had the proper tax provisions been made.
- Cavendish IP Solutions sent a letter before action on 5 May 2022. An offer of settlement was received on 19 May which was rejected, and a counter offer was made on the same day.
This was accepted on 26 May 2022 and a settlement agreement was completed on 1 June 2022. Money in the Bank!
- Cavendish IP Solutions’ detailed and forensic approach brought a quick result - less than 6 weeks from their initial involvement to settlement!
If you have a claim you would like to discuss with us, please contact us. Involving a Litigation Funder can be of mutual benefit and bring quicker results. We would be glad to hear from IPs with similar cases.