Wednesday 22 November 2017

Drumm faces joint legal action by ex-Anglo investors

Luke Byrne

Luke Byrne

DISGRACED former Anglo Irish Bank CEO David Drumm is facing a bill of up to €500,000 if a group of former shareholders successfully sue him.

Two solicitors are among those preparing cases against Mr Drumm because he signed off on allegedly fraudulent annual accounts while an Anglo director.

Last week Mr Drumm revealed in US bankruptcy documents that he was being sued by five former Anglo shareholders -- in a joint action -- and is threatened with legal action by another.

Jayne Mollard, Brian Doyle, Belinda Ennis, Michael J Curley and Anne Marie Kidney, all from Dublin, were named as the five shareholders in an updated statement of affairs filed at the District of Massachusetts bankruptcy court.

Floodgates

If successful, the cases could open the floodgates for former shareholders to take legal action against Mr Drumm for his part in the collapse of the bank.

An Irish Independent investigation has found the six named people held a combined total of 20,385 shares in Anglo in February 2007.

When valued at €17 at their peak in 2007, those shares were worth €346,545. However, the shares became virtually worthless when the bank was nationalised in January 2009.

The shareholders are preparing to sue for the value of the shares, and for interest that would have been paid if the money was kept in a savings account, and for costs.

The total sum is estimated at about €500,000.

None of the shareholders in the joint action wished to comment publicly on the case when contacted. One told the Irish Independent: "I've lost it all."

Irish Independent

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