AIB settles out of court with sacked Sheerin

The dispute between Allied Irish Bank and one of its senior managers who was sacked over his role in the foreign exchange scandal…

The dispute between Allied Irish Bank and one of its senior managers who was sacked over his role in the foreign exchange scandal has been settled out of court.

Lawyers for Seamus Sheerin (41) agreed not to continue with High Court action to have him reinstated after four hours of negotiations today.

Details of the deal were not made public. No indication was given as to whether or not Mr Sheerin will be reinstated at the bank or if he received any compensation. A spokesman for Mr Sheerin said: "The matter has been resolved to his satisfaction."

Mr Sheerin was sacked as head of AIB's strategic development unit in March after an internal disciplinary board made findings against him on four grounds.

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He was the first official at AIB to lose his job over the scandal.

At previous hearings in the High Court in Dublin, Mr Sheerin made a number of allegations drawing some of the bank's most senior officials into the affair.

He claimed senior executives were aware of the overcharging issue in September 2002, 20 months before the affair was made public.

Lawyers representing officials at the bank claimed that Mr Sheerin's allegations were completely unfounded. They also claimed Mr Sheerin had taken a number of remarks made to an inquiry team run by Deloitte & Touche out of context.