Web Summit shareholders settle bitter High Court dispute

On the seventh day of the civil trial hearing of five separate actions, Mr Justice Michael Twomey said he was “really, genuinely pleased” for all parties in the case who saved court time and possible reputational and personal cost in cases that had been listed to last up to nine weeks.

Mr Justice Twomey then wished all parties the best for the future and adjourned the matter until next month.

On Wednesday, the court was due to hear evidence from Web Summit minority shareholder Mr Hickey but proceedings were put back as lawyers and parties held talks in corridors all morning outside Court 29 in the Four Courts.

At around 12.30pm on Wednesday, barrister Michael Cush SC, also for Mr Kelly, told Mr Justice Twomey that negotiations had not yet borne fruit but that time in the case had not been wasted. Mr Justice Twomey then adjourned the case until 2pm.

At around 2.05pm, Mr Cosgrave's legal team asked him to step outside the court and five minutes later counsel for all three were seated before Mr Justice Twomey.

Mr Cush said he was pleased to say there had been a beneficial development through talks and that what was discussed between all three parties will be written up overnight and presented to the court on Thursday morning.

Mr Cush thanked the judge for the time allowed for the parties to enter into settlement discussions. Mr Justice Twomey then adjourned the matter for finalisation until 11am on Thursday morning.

Majority shareholder Mr Cosgrave was suing Mr Kelly, who owns 12% of the shares in Web Summit, for alleged breaches of his fiduciary duties as a director of the company.

Mr Cosgrave was, in turn, being sued by Mr Kelly and Mr Hickey, who holds 7% of the shares in Web Summit, for alleged shareholder oppression and breaches of a profit-sharing agreement.

Speaking afterwards Mr Cosgrave said it was a “great day for Web Summit” and that the company was “delighted to remove these two individuals [Mr Hickey and Mr Kelly] as minority shareholders”.

“Our agreement vindicates everything Web Summit has done to protect its interests and stand up for its principles. It’s heartening that Daire Hickey and David Kelly have recognised publicly what we have known for years: that them leaving the company as shareholders is in Web Summit’s best interests.

“It’s gratifying that every single one of the claims made against me or the company has been withdrawn and crucially, David and Daire have finally publicly accepted that I and I alone founded Web Summit in 2009, contrary to their claims over many years.

“Thankfully, though, we have an amazing team at Web Summit and can once again focus wholly on growing our position and reputation as the world’s premier tech conference.

“I would like to thank our legal team, led by Bernard Dunleavey SC, Derek Shortall SC, [solicitor] Elizabeth Burke, who is amazing, and our general counsel Adam Connon, who is also amazing, my colleagues and friends as well and most of all, my amazing wife, Faye, my two boys and my wonderful family for always supporting me and doing the right thing. Thank you very much.” 

A statement from Mr Hickey said: "Daire is very pleased with the outcome today. He would like to thank his family, friends and colleagues as well as his excellent legal team, Dentons, and his barristers for their support throughout. He is now looking forward to getting back to work and his family life.” 

A statement from Mr Kelly, who was not in the court on Thursday morning, said: “David is very pleased that an agreement has been reached between the parties. He is grateful to Dillon Eustace, his entire legal team and his family and friends for their support throughout the process and the many years leading to this.” 

Web Summit has been valued at between €280m and €360m. Details of the settlement were not made public in court today.