Dallas giant Jenkens & Gilchrist has agreed to fork out $75m (£40.6m) to settle a class action lawsuit brought by some former clients over the firm’s role in advising on controversial US tax shelters.

The settlement stems from two class actions brought last August in New York against Jenkens by plaintiff firms Cory Watson Crowder & DeGaris and Shore Deary. Jenkens chairman Tom Cantrill said: