Fyffes to appeal insider dealing ruling
Fruit distributor Fyffes is to mount a Supreme Court challenge over its failed €106m insider-dealing case against former director, DCC chief Jim Flavin, the company confirmed today.
Fyffes took the unsuccessful High Court lawsuit after DCC sold stock in the company a month before a March 2000 profit warning was issued, making €85m on the deal.
Last December, following a lengthy 87 days of hearings, Ms Justice Mary Laffoy ruled that Mr Flavin was not in possession of price-sensitive information at the time of share deals in February 2000.
The judge said the sales were not unlawful.
In a statement Fyffes confirmed the Supreme Court appeal would be launched shortly.
“The board’s decision to appeal follows a detailed analysis of the judgement by the directors and by the company’s counsel,” a statement said.
Fyffes said notice of the appeal would be served shortly.
Legal costs in the case were estimated to be around €20m.
But in February the High Court ruled DCC should pay about 10% of the bill.
During the hearing, Fyffes alleged that Mr Flavin dealt in Fyffes shares on behalf of DCC, and that he was in possession of price sensitive information at the time.
Mr Flavin was a non-executive director of Fyffes at the time of the February 2000 sales.
DCC sold shares worth €106m making a profit of €85m.
DCC argued that neither it nor Mr Flavin had dealt and that the dealing was done by a Dutch-registered subsidiary.
DCC said it would fight the Supreme Court challenge vigorously.
The firm also said the original action by Fyffes was wholly unjustified, totally inconsistent with Fyffes’ own statements and conduct at the time, and utterly without merit.
“The correctness of the board’s view that the defendants were not in possession of price sensitive information as alleged by Fyffes was fully borne out by the High Court decision of 21 December 2005,” DCC said in a statement.
“The Board of DCC is even more surprised at Fyffes’ decision to further pursue this matter by lodging an appeal to the Supreme Court against the High Court judgement.
“The appeal will be challenged vigorously and comprehensively. DCC is confident that there are no good grounds of appeal and that the detailed and considered decision of the High Court will be upheld.”
