Evidence was taken in the High Court in Dublin yesterday by video link from Florida in preparation for the future hearing of proceedings brought against Elan by a former chief executive and chairman of the company, Donal Geaney, who claims he is being denied share option entitlements worth up to $12 million (€9.28 million).

The video link evidence, which was heard at a private sitting yesterday, was taken from Daniel Tully, a director of Elan who lives in the US and is ill.

Mr Tully's evidence will eventually be slotted into the full hearing of the case for which a date has yet to be fixed.

In the action, Mr Geaney is claiming he has been denied his entitlements which could exceed $12 million.

He claims he was given a remuneration package in November, 1989, which included share options.

Mr Geaney contends that, following his removal from office, he had a telephone conversation with Mr Tully and Elan chairman Garo Armen, who confirmed he would be treated in the same manner as other senior executives who left or would be leaving the company.

Mr Geaney claims that the effect of that conversation was that he would have 24 months from the date of the termination of his employment in which to exercise his share options.

He says he worked up to December 2003 on a full-time basis and subsequently on a part-time basis because of a deterioration of his health. When the agreement expired, it is claimed, Elan unlawfully terminated his employment.

It is claimed by Mr Geaney that the company wrongfully and in breach of agreed terms purportedly asserted that he was not entitled to exercise the share options held by him.

Elan denies the claims. It submits that Mr Geaney was granted a new two-year employment contract, with the relationship being severed at the end of the contract. At no stage did any negotiations take place in respect of extending the option exercise period post termination, it has stated.