Financial services law firm Regulatory Legal is suing Tailormade Alternative Investments over claims the investment business made defamatory statements about it.
Tailormade Alternative Investments is a non-regulated company which distributed, among other things, investments in troubled overseas property scheme Harlequin Property.
It is owned by the same group that owned IFA firm Tailormade Independent Limited - also was a major distributor of Harlequin - which is now in liquidation.
Regulatory Legal, which acts on behalf of hundreds of beleaguered Harlequin investors, has drawn the ire of Tailormade because it plans to pursue Harlequin agents and IFAs for redress on behalf of investors, many of whom believe they were mis-sold the high risk investment.
The law firm is also currently in the process of helping investors set up a trust to preserve the value of the properties - some built, some not - that they invested in through Harlequin, which has been rocked with problems since the start of the year.
A spokesperson for Regulatory Legal said: "We have taken many barbed and sometimes unfair comments from investors, IFA's and agents alike.
"We are big enough to let the majority pass. After all, this is a very difficult situation for many people.
"However irrespective of the unhappiness of Tailormade there is no need to make statements simply to seek to cause damage."
Tailormade declined to comment.
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From 6 April 2019