THE High Court in Dublin today was made aware that the legal case involving three shareholders from the Web Summit had been settled. The dispute was said to have cost ‘millions’ and would have involved a prolonged, embittered process without the settlement.
The case, which was expected to last three months, unexpectedly came to a resolution following a statement from Mr Justice Michael Twomey last week. He called on all sides to redouble their efforts in a ‘very personal dispute’ to come to a resolution outside of court.
Following a number of adjournments this week, the case allowed settlement talks to take place with the court being informed yesterday of a breakthrough. The court then heard this morning that the matter had been resolved with further adjournment expected until 29th April this year.
The case came about after Web Summit founder Paddy Cosgrave sued his former school friend David Kelly who holds a 12% stake in the business. Counsel for Mr Cosgrave alleged that Mr Kelly had breached some of his directors’ duties and was seeking more than €10 million in damages for losses.
It is understood that Mr Kelly’s alleged derogation of duty had to do with his involvement in the establishment of a venture capital fund separate from Web Summit. In response, Mr Kelly – along with former director Daire Hickey, who has 7% shareholding in the business – countersued Mr Cosgrave.
Judge Twomey said that without a resolution outside of court, the case would take three months. He said that it could even have ran to 2028 if a decision was appealed and made its way to the Supreme Court.
He advised the parties involved that time spent on the case they ‘would never get back’ and emphasised the toll it would take due to its inherently personal nature. Senior Counsel Bernard Dunleavy said that witness statements from the case read more like a family law case than something from a typical commercial dispute.