A high profile Queen's Counsel and one of the country's biggest law firms are stepping down from Kim Dotcom's legal team, according to the entrepreneur's United States attorney.
Paul Davison, QC, has been representing Dotcom during attempts by United States authorities to extradite him to face trial on what is alleged be a conspiracy to commit the biggest-ever breach of copyright.
Simpson Grierson partner William Akel has also been acting on the case and fellow partner Tracey Walker was representing Dotcom in a lawsuit he is facing from Hollywood studios.
The firm - one of the biggest in New Zealand which will soon employ former health minister Tony Ryall as head of public policy - were recorded as solicitors for Dotcom in both cases.
But the Megaupload founder's US lawyer, Ira Rothken, has tweeted that both Davison and Simpson Grierson are stepping down from Dotcom's legal team.
"They did world class legal work & were great colleagues," Rothken also said in the tweet.
Davison said he was unwilling to comment "beyond that which has already been reported".
Radio New Zealand has reported that Davison confirmed the legal team would seek leave from the courts to withdraw from the case.
Davison said to the next hearing in the case was this coming Monday.
A Simpson Grierson spokesman said the firm could not discuss client matters when asked if Rothken's comments were correct.
Rothken followed up by tweeting that he was looking forward to working with "internet guru" Rick Shera from Auckland firm Lowndes Jordan to "help build up the @KimDotcom litigation team in NZ".
He later clarified that Shera was only retained for due diligence to see if the firm could help with the extradition case.
A statement on Lowndes Jordan's website said reports that Shera or the firm was acting for Dotcom were incorrect.
"We do not currently act for Kim Dotcom in any proceedings and nor have we agreed to do so. We filed an affidavit in Mr Dotcom's extradition proceedings last week to this effect and nothing has changed since then," the firm said.