Case against DCC adjourned to January 11th

The legal action by Fyffes plc alleging "insider dealing" by DCC and its chief executive Jim Flavin at the time of three shares sales in February 2000 has adjourned at the High Court to January 11th. It is expected to continue beyond Easter 2005.

Mr Kevin Feeney SC, for DCC and Mr Flavin, yesterday continued with his lengthy cross-examination of Fyffes chief executive Mr David McCann.

As it was the last day of the Michaelmas law term, the case was then adjourned, and will resume before Ms Justice Laffoy on January 11th.

When the judge asked when the case might be expected to conclude, she was told that it was unlikely to finish before the end of the next law term, which concludes on March 18th. Some 40 persons have made witness statements in the case, and it is likely many of these will be called to give evidence.

It is also likely that Mr Flavin's evidence and cross-examination will last several days.

In the proceedings, Fyffes claims that DCC and Mr Flavin organised three share sales on February 3rd, 8th and 14th, 2000, for €106 million, yielding a profit of €85 million.

It is alleged that the defendants were in possession of price-sensitive information at the time of the share sales, and, therefore, breached "insider dealing" provisions of the Companies Acts.

The action is against DCC, Mr Flavin and two subsidiaries of DCC - S&L Investments Limited and Lotus Green Limited.

The defendants deny the claims, and plead that the shares were owned by Lotus Green, a Dutch-registered company, which, it is pleaded, dealt legitimately in the shares in February 2000.

The case began on December 2nd and was opened in detail over six days by Mr Paul Gallagher SC, with Mr Paul Sreenan SC and Mr Bryan Murray SC, for Fyffes.

The first witness was Mr David McCann, who has spent five days to date in the witness box. His cross-examination will resume on January 11th.

The next witness will be another director of Fyffes, Mr Jimmy Tolan.

Other witnesses who may be called include Mr Neil McCann and his son, Mr Carl McCann, retired Fyffes chairman and deputy chairman of Fyffes respectively.

There will also be evidence heard from experts from the Republic, Britain and the US, who will deal with stock market rules and regulations and with the key issue in the case - what constitutes price-sensitive information, and whether Mr Flavin had such information in February 2000.

It is not expected that Mr Flavin will begin to give his evidence before February at the earliest.