Orders striking out claims by Belfast developer Patrick Kearney against stockbroker Davy and 16 of its former employees who made up a consortium known as the O’Connell Partnership have been granted by the Commercial Court.
The action related to the handling of a 2014 sale by Mr Kearney of Anglo Irish Bank bonds to the partnership.
As part of the settlement agreement, 15 members of group are to pay the legal costs of Mr Kearney and his company, Kilmona Holdings, arising from the case.
The legal costs of the former Davy executive, Tony O’Connor, who was also a defendant, are also to be paid by the 15 consortium members.
The court heard all parties have agreed to the orders.
A counterclaim by Mr O’Connor against Mr Kearney, which claims he reneged on a profit share deal, has not yet been resolved.
Counsel for Mr O’Connor, Patrick O’Reilly, sought an adjournment on this aspect of the case for a period of a month.
The other 15 former employees will indemnify Mr Kearney and Kilmona Holdings regarding the counterclaim, under the orders approved by the court.
Counsel for Davy told Mr Justice McDonald that his client agreed to the agreement, while senior counsel, Marcus Dowling, who represented 15 of the 16 members of the consortium also said his clients consented.
Sources have indicated that the settlement will see Mr Kearney receive around €2m.
Mr Kearney and his firm Kilmona Holdings began the legal action two years ago over the 2014 deal which saw Davy act for the businessman in the sale of the bonds to the O'Connell Partnership, which was made up of the 16 Davy employees buying in a private capacity.
In March 2021, the Central Bank fined Davy €4.1m and reprimanded it over regulatory breaches related to the transaction.
It found Davy prioritised facilitating an opportunity for the consortium to make a personal financial gain over ensuring that it was complying with its regulatory obligations.
The reprimand was followed by the departure of a number of senior figures at the broker and its subsequent sale.
Mr Kearney initially took a case against Davy in 2015 and later reached a settlement with it worth around €1m.
But following the Central Bank fine in 2021, he initiated fresh legal action against Davy and the 16 members of the O’Connell partnership seeking to have the previous settlement set aside and making fresh claims, which have been denied by the defendants.
