Duane Reade Holdings Inc. has denied owing Kasowitz, Benson, Torres & Friedman the $7 million “success fee” the firm claimed it is owed in a lawsuit it filed last month.

Kasowitz Benson said its former client refused to pay it a portion of a more than $39.5 million settlement in a contract dispute between the drugstore chain and ATM operator Cardtronics LP.

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