Senior Partner Aziz Rahman tells Bloomberg about a likely explosion of litigation between companies as Cum-Ex investigations progress.

As companies involved in Germany’s Cum-Ex investigations seek to protect their positions, Rahman Ravelli’s Aziz Rahman told Bloomberg this could lead to an explosion of litigation.

Aziz said that such action was likely as companies looked to defend themselves against allegations and explain why others are to blame. His comments were prompted by reports of financial institutions turning on each other over their alleged involvement in the controversial trading practice.

Although Cum-Ex trading ended in 2012 in Germany, when the country changed its rules, the authorities are increasingly keen to begin investigations against companies and charge traders and bankers that they believe were involved.

Aziz explained that as the amounts lost in tax revenue to Cum-Ex ran into the billions of euros, the authorities will be seeking very large penalties from those found to be liable.

Aziz's comments can be read here.