Former Elan chief dies

The former Elan chief executive Donal Geaney has died after a long illness, it emerged tonight.

Mr Geaney, who died this morning at the age of 54, helped transform Elan from a small Irish company into an international pharmaceutical giant.

However, he was forced to step down in 2002 after an investigation by the US Securities and Exchange Commission (SEC) into the company’s accounting policies caused its shares to drop by 95%.

He settled a High Court action with Elan earlier this year for €3.5m plus costs after claiming he had been denied share option entitlements.

Before the settlement was agreed between Elan and Mr Geaney in June, the commercial division of the High Court had planned to hold shorter than normal sittings to facilitate his illness.

At the time of his death, Mr Geaney was also chairman of the National Pensions Reserve Fund and chairman of the Irish Aviation Authority (IAA).

The IAA said he had brought great energy and vision to his role since his appointment in 1998.

“During his time as chairman he presided over several critical initiatives including a major upgrade of the air traffic control infrastructure in the state and a significant re-organisation of airspace to the North West of Ireland,” it said in a statement on its website.

Elan paid $75m (€62m) last year to settle a class action taken against it, Mr Geaney and other executives. The class action was taken by investors who lost money when Elan’s shares collapsed in value from a high of $40 (€33) to $2 (€1.30) in 2002.

Elan also paid a $15m (€12.3m) civil fine to the SEC in return for the commission ending its investigation.

However, as recently as February, Mr Geaney wrote to newspapers to defend his role in the controversy.

“The SEC’s decision not to bring any charges against me after this lengthy, probing investigation is a complete vindication. I have acted properly in all my roles as executive and director of a number of companies over the years,” he said.

Mr Geaney grew up in Dublin and went to school in Gormanstown, before graduating from Trinity College.

He worked as a partner in the accountancy firm Stokes Kennedy Crowley (now KPMG) before joining Elan. He was a keen golfer and rally enthusiast.