Defunct German giant Haarmann Hemmelrath has pinned the blame for its collapse on a former client’s €400m (£275m) negligence claim and is set to counter-sue the company for damages.

Around 50 of the firm’s former partners are in negotiations with the Werhahn family (which made the claim against Haarmanns in 2004) with the hope of settling the dispute, but are prepared to take it to court.