Lawyers for company of CEO who allegedly spent firm’s funds on homes for girlfriends withdraw from case

Move came after a proposed settlement of a dispute with one of the company’s executives was not proceeded with

The case was brought by Jennifer O’Carroll, chief operations officer of Limerick-based software group, HansaWorld. Photograph: Bryan O'Brien
The case was brought by Jennifer O’Carroll, chief operations officer of Limerick-based software group, HansaWorld. Photograph: Bryan O'Brien

Solicitors who represented a company whose chief executive allegedly spent the firm’s money providing homes and jobs for his girlfriends, who had allegedly been screened through illicit websites, have withdrawn from the case, the High Court heard.

It came after a proposed settlement of a dispute with one of the company’s executives was not proceeded with and the company’s original lawyers decided to “come off record”.

The case was brought by Jennifer O’Carroll, chief operations officer of Limerick-based software group, HansaWorld, who had sought orders against the company lifting her suspension as director and company secretary and to stop alleged interference in her role as COO.

Settlement in case of CEO spending firm’s money on girlfriends could break down, court toldOpens in new window ]

As part of her proceedings, O’Carroll had made claims about the manner in which the group’s CEO and majority shareholder, Karl Bohlin, had been running the business and what she considered was his “extravagant personal spending” using company funds.

She claimed that since last spring, Bohlin had been primarily concerned with his love life and finding a girlfriend which he described as his “highest priority, she said.

She claimed Bohlin used the company human resources “to screen the girls from various illicit websites for suitability”.

Negotiations took place between lawyers for both sides and eventually a settlement of the matter was agreed which would see the end of the court proceedings.

However, when the settlement was signed on behalf of the company, it was not the one the lawyers had agreed but another version.

As a result, the company’s lawyers said they would no longer be able to represent HansaWorld.

On Thursday, Mairéad McKenna, barrister for the solicitors, said the relationship between her client and the company appeared to have broken down.

There had been difficulties in obtaining instructions and other difficulties in relation to the discussions which took place between the parties, she said.

New solicitors had agreed to represent the firm, she said.

Judge Brian Cregan approved the application for the solicitors to come off record and noted a letter from the defendant that new solicitors would be coming on board and everything would be done to “regularise the situation and inform the court”.

The case now goes back to the normal court list to get a hearing date.

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