Business Irish

Friday 15 December 2017

'AIB six' case opens as mediation fails


Aodhan O Faolain and Siobhan Creaton

AIB's case against six former executives it claims secretly schemed to take clients and damage the business of its International Financial Services subsidiary has begun in the High Court after both sides failed to settle it in mediation talks last week.

AIB claims some of the executives were behind a management buyout offer for AIB International Financial Services (IFS). However when AIB decided to sell the business to another group called Capita in June, it claims the six set up a rival business to take over the clients, business and staff of IFS.

The six executives are Pat Diamond from Elton Park, Sandycove in Dublin; Aidan Foley, formerly of Grawn, Kilmacthomas in Wexford; Gerry McEvoy formerly of Shandon Park, Phibsboro in Dublin; Derek O'Reilly of Fernleigh Drive Castleknock in Dublin; Andrew O'Shea formerly of Ashbrook House, Julianstown in Co Meath; and Joe Walsh formerly of Grosvenor Terrace, Monkstown in Co Dublin.

They dispute AIB's claims, and have denied any wrongdoing.

Last month AIB secured a temporary injunction requiring the defendants to preserve all documents and computer records.

In its action AIB claims after 25 directors and employees left IFS between June and August, the other group, Capita, had reduced its offer to buy IFS from €55m to €33m.The bank also claims an internal inquiry revealed that their actions had led to significant loss and damage.

The High Court heard that mediation talks took place late last week and yesterday Judge Frank Clarke was informed that AIB's application for injunctions against a number of the defendants is to proceed.

Irish Independent

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