West Ham intend to "vigorously defend" the £7.1million legal claim made against them by Kia Joorabchian.
The Iranian insists he has evidence to prove West Ham continued to break third-party ownership rules even after being fined £5.5m over the Carlos Tevez and Javier Mascherano deals.
Joorabchian has brought a £7.1m court action against the club who yesterday filed their defence.
A West Ham spokesman said on Friday "We will vigorously defend the claim that is being made, if required to do so, in the court."
Joorabchian's claim is thought to be centred on alleged verbal promises made to him by Scott Duxbury, the club's chief executive, and former chairman Eggert Magnusson at the time of the Tevez controversy.
"I know they have broken the rules and broken them badly," said Joorabchian.
"They have been lying and cheating and it's time the whole truth came out. There were agreements in place, I know it and they know it."