Vale Council says it's received no official notice over threatened legal action from a local authority in Essex.
Thurrock Council is planning to sue 23 authorities in Wales and England - including Cardiff and the Vale of Glamorgan - as part of a legal claim against a non-profit local government association.
Vale Council says it doesn't believe it has any liability for the losses suffered.
Two years ago, the unitary council went bankrupt following a number of failed investments in solar farms, leading to a debt of a £1.5 billion.
According to the Local Democracy Reporting Service (LDRS), they allege the Association for Public Service Excellence (APSE) provided negligent valuations of solar farms in relation to hundreds of millions of pounds in investments with Liam Kavanagh and his company, Rockfire Investments.
A spokesperson for Vale of Glamorgan Council said: "No official correspondence has been received on this matter. Should any claims be brought, they would be vigorously defended as the Vale of Glamorgan Council does not believe it has any liability for the losses suffered."
Cardiff Council have described Thurrock's allegations as "spurious" while Swansea Council also says it will defend itself against any legal action brought against them.
Flintshire County Council, which is also facing a legal challenge, has yet to comment.
In a statement, Thurrock Council leader John Kent said: “While our primary focus is on recovering money from those who sought to line their own pockets from the public purse, we have a duty to consider all lines of recovery."
“This includes pursuing those organisations whose incorrect advice also contributed to the council’s decision to make the poor investments.”
An APSE spokesperson said: “APSE is extremely disappointed that in the midst of a pathway to resolving a complex and costly dispute – one that risks embroiling over 250 local councils in a legal matter – Thurrock Council has chosen to issue a press release which risks undermining sensitive discussions with our member local councils."
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