The board of the business services group DCC says it has full confidence in its executive chairman, Jim Flavin, following today's judgment at the Supreme Court which found in favour of food distribution company Fyffes.
Earlier today, food distributor Fyffes won its appeal against a High Court ruling in which the company claimed it was the victim of insider trading.
This multi-million euro legal confrontation has its roots in the sale in Feb 2000 by DCC of its 10% stake holding in Fyffes.
The sale was handled by Jim Flavin, chief executive of DCC, and netted DCC an €85m profit.
The Supreme Court found that the High Court made an error in concluding that trading reports in the possession of Development Capital Corporation, a company that owned a major share of Fyffes, were not price sensitive.
However the Supreme Court upheld the High Court finding that Jim Flavin was not aware he was in possession of price sensitive information.
Mr Flavin was also a director of Fyffes, and had access to trading reports which the High Court found were 'very bad news for Fyffes'.
The ruling clears the way for Fyffes to bring its case back to the High Court. It is seeking €85m in compensation.
In a statement released tonight the board of DCC expressed its 'full confidence in and unanimous support for Jim Flavin as Executive Chairman of DCC'.
The statement added: 'In allowing the Appeal, the Supreme Court judgment did not affect the High Court's finding that the sale of the shares by the DCC Group was not in any way motivated by the information relating to Fyffes which was in the possession of Jim Flavin and that, accordingly, the sale did not involve any use of that information.
'The Board wishes to assure shareholders that the focus of the DCC senior management team continues to be on the growth and development of the company in the best interests of its shareholders.'