International Controls Corp. has settled a 4-year-old suit against Hogan & Hartson, its former law firm, in return for a payment of $666,000 from the firm.
The suit grew out of a 1977 internal investigation at International Controls Corp. that alleged H&H had aided fugitive financier Robert Vesco in using the company's assets to enrich himself.
The report was written as part of the settlement of a suit by the Securities and Exchange Commission against International Controls.
Vesco once headed the company and owned 25 percent of its stock. Beginning in 1970 he used the electronics firm to gain control of Investors Overseas Services Ltd., then a $2.5 billion financial conglomerate based in Switzerland.
H&H, a prominent Washington firm, represented both International Controls and Vesco at the time.
International Controls, now based in Thomaston, Conn., had originally sued H&H for $16.3 millon. Internatonal Controls said it decided to settle the suit "upon the advice of counsel, and taking into account the extent to which the evidence supports the allegation of the complaint."
Joseph M. Hassett, a partner in the law firm, said the company's statement showed "there is no evidence to support the complaint."
He said that H&H decided to settle when the firm's insurance company advised that "the cost of further litigation involving the complex business transaction in which H&H represented International Controls would far exceed the amount of the settlement."