Fyffes has claimed victory in its long-running battle against a former shareholder over alleged insider trading.
Ireland’s Supreme Court found in favour of the Irish fruit importer in its case against former shareholder, the sales and marketing firm DCC, as well as DCC executive chairman Jim Flavin.
Fyffes had long argued that DCC had breached laws on insider dealing when it sold a stake in Fyffes in 2000.
Fyffes had claimed that Flavin, who was then one of its directors, had possessed price-sensitive information when DCC sold its stake. Fyffes argued that if the information had been released, its share price would have fallen.
The ruling from Ireland’s highest court, issued on Friday afternoon (27 July), overturned a 2005 ruling that DCC and Flavin had not breached laws on insider trading.
“The board of Fyffes is pleased that its Supreme Court appeal has been successful and that the five Judges of the Court found, unanimously, that the trading information in Mr Flavin’s possession when he dealt in Fyffes shares in early 2000 was price sensitive,” Fyffes said. “The board of Fyffes has always believed in the merit of the legal action.”
DCC said it has “full confidence in and unanimous support” for Flavin and wants him to stay on as executive chairman.