US tanker company Overseas Shipholding Group, Inc. has reached a final settlement with Proskauer Rose LLP and certain of its partners in connection with the previously disclosed lawsuit brought against that firm by the company.
OSG said that as part of the settlement, Proskauer Rose LLP has agreed to release the claims it asserted against current and former officers of the company, including James Edelson and Myles Itkin.
“We are pleased to have reached an agreement to settle this case that we believe is in the best interests of the Company and other stakeholders,” said Captain Ian T. Blackley, OSG’s president and CEO.
“By reaching a final settlement we also eliminate the distractions that come with any litigation allowing us to focus our full attention on adding value to the business.”
OSG had filed a suit against the law firm claiming that faulty legal advice resulted in a more than USD 255 million tax liability for Overseas Shipping Group.
On the other hand, Proskauer, OSG’s longtime tax adviser, alleged that the tanker company’s tax problems stemmed from a 2006 credit facility signed with another law-firm and had filed an appeal to OSG’s lawsuit which was rejected by a New York court in 2015.
The tanker company filed for bankruptcy in November 2012, due to, among other things, its major tax problem, that was valued at USD 463 million for back taxes for five years since 2004. However, the company managed to trim down the claim to USD 255.7 million under its bankruptcy plan.