An ex-wife of billionaire Chelsea FC owner Roman Abramovich and her former aide have settled a multimillion-pound High Court battle.
Irina Abramovich sued Cynthia Hoffmann for breach of contract, claiming she had ‘destroyed [her] trust and confidence’ through a ‘series of acts and omissions’ during a five-year spell as Ms Abramovich’s executive manager.
Ms Abramovich also claimed she had to pay more than £400,000 in unpaid tax and national insurance because Ms Hoffmann did not pay any on her annual salary of about £200,000.
Irina Abramovich pictured recently outside the High Court +3
Irina with Roman in Rome on November 4, 2003 +3
Irina Abramovich pictured recently outside the High Court (left) and with Roman in Rome on November 4, 2003
Ms Hoffmann launched a counter claim, arguing her former employer had only brought the case in a bid to force her to drop separate proceedings for unfair and wrongful dismissal.
But at a hearing in London on Monday, Ms Abramovich’s barrister Sam Grodzinski QC announced that the parties had reached a confidential settlement.
He told Judge Murray Rosen QC: ‘The parties regret that this case, which concerned the ending of Ms Hoffmann’s employment with Ms Abramovich and with Ms Hoffmann’s tax position, went to court, but have now agreed to settle their differences.
‘The terms of the settlement are confidential.
‘Ms Hoffmann has withdrawn all allegations of dishonesty made against Ms Abramovich in this litigation and in the employment tribunal and Ms Abramovich has agreed not to pursue any allegations of dishonesty made against Ms Hoffmann.
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‘Ms Hoffmann has accepted that tax was paid by Ms Abramovich on behalf of Ms Hoffmann.
‘Under the circumstances the parties have agreed confidential terms of settlement of all disputes between them.’
Ms Abramovich was the second wife of Roman Abramovich, with whom she had five children before they divorced in 2007.
She engaged Ms Hoffmann, with whom she was previously friends, to manage her family office in 2010.