Web Summit cases to be heard over nine weeks starting next March

The minority shareholders have also individually sued the company and Paddy Cosgrave claiming a breach of an alleged profit share agreement

Mon, 22 Jul, 2024 - 16:46

The trial of disputes between the Web Summit co-founders is due to be heard over nine weeks beginning next March.

The legal teams involved in the five High Court cases have for more than two years sifting through millions of files as part of the process of sharing relevant documents with each other.

The first of the lawsuits, which are all vigorously contested, was initiated nearly three years ago.

The tech events company and its chief executive Paddy Cosgrave, an 81% shareholder in the firm, issued proceedings in September 2021 against David Kelly, who owns a 12% stake in the company.

They allege he breached his duty to the company by attempting to secretly use Web Summit’s resources to set up an investment fund for his own personal gain. Mr Kelly says these claims are without foundation.

He and Daire Hickey, a 7% shareholder, have separately sued Web Summit and Mr Cosgrave under section 212 of the Companies Act, 2014, alleging oppression of their minority shareholders’ rights.

Among Mr Kelly’s claims is that the chief executive used company social media accounts and finances for personal projects. Mr Hickey alleges Mr Cosgrave failed to observe corporate governance norms and engaged in a concerted strategy to force him out of the business.

The claims are fully contested, and, in response to the latter case, Mr Cosgrave alleges Mr Hickey engaged in “secret profiteering”.

The minority shareholders have also individually sued the company and Mr Cosgrave claiming a breach of an alleged profit share agreement.

All of the allegations in each of the cases are denied.

On Monday morning, Mr Justice Denis McDonald was told the cases were ready to be scheduled for trial. The judge gave them a provisional hearing date beginning March 18.