Fillip for Elan on SEC settlement

ELAN is finally emerging from the confidence crisis that hit the company in 2002, resulting in a massive fall in its share price, with the announcement of a settlement with the US Securities and Exchange Commission.

Elan will pay $75 million (€58.6m) to settle a shareholder lawsuit $35 million of the cost will be covered by insurance and a $15 million (€11.72m) fine to resolve a SEC complaint into the company's accounting.

The settlements have been reached on the basis of "no admission or finding of wrongdoing on the part of any defendant." Initially yesterday the shares rose 74 cent to €20.41 as of 8.07am in Dublin but closed down 8c at the official close. The shares have almost quadrupled since the beginning of the year.