AIB keeps lawsuit cost under wraps

Allied Irish Banks (AIB) is keeping under wraps the terms of the settlement it agreed with Citibank to halt the $872m lawsuit it took against the US banking giant over rogue trader John Rusnak’s losses.

The State-owned lender refused to say whether as part of the settlement it will receive full compensation for the huge legal costs it incurred in pursuing the case for almost 13 years in a Manhattan court.

The litigation will likely be among the costliest ever conducted by an Irish company.