Irish Nationwide Building Society case settled

A legal action against four former directors of Irish Nationwide Building Society (INBS) over alleged “wholly unlawful” delegation of powers of the board of the INBS, to its former CEO Michael Fingleton, has settled, the Commercial Court heard yesterday. No terms of settlement were disclosed.

A separate action against Mr Fingleton, involving a claim by State-owned Irish Bank Resolution Corporation for up to €6bn over losses suffered by the INBS, is proceeding on a date yet to be fixed. Mr Fingleton denies any liability, has pleaded he was not negligent and had prudently sought to reduce the INBS’s exposure.

IBRC, which took over INBS, had separately sued John Stanley Purcell and three other former INBS directors — former chairman Michael Walsh, Terence Cooney and David Brophy — over alleged breach of contract, breach of duty and negligence over the alleged delegation of the board’s powers to Mr Fingleton from 1997 to 2009.