Former Smart Telecom chief executive Oisin Fanning is to be paid substantial undisclosed damages in settlement of a High Court libel action against the Irish Mail on Sunday over an article accusing him of a criminal offence he did not commit and describing him as enjoying "a playboy lifestyle".
Mr Fanning (49), Fournaughts House, Johnstown, Naas, Co Kildare, had sued Associated Newspapers over the article on October 8th, 2006. Among other claims, it alleged he had been charged with fraudulent conversion, when in fact he had not been.
The case opened last Friday in the High Court and was due to resume yesterday before Ms Justice Elizabeth Dunne and a jury.
However, when the case was called, Paul O'Higgins SC, for Mr Fanning, said the case had been settled on terms which included the reading of an apology by Mr Eoin McCullough SC, for the newspaper.
The apology stated the newspaper had made unwarranted allegations which it unreservedly withdrew. Mr McCullough said the paper also wished to apologise for distress and upset which the article caused to Mr Fanning and his family. The apology also stated the paper has agreed to pay "a substantial sum" for damages and to discharge Mr Fanning's legal costs.
Mr Fanning declined to say how much he is to receive.
The High Court heard the article was published under the headline "What a Smart move, millionaire phone company founder quit before it crumbled". It described Mr Fanning as having left Smart Telecom, which was sold for just €1 and had €40 million in debts, just as "financial clouds started to gather". It also described Mr Fanning as a millionaire with a playboy lifestyle living in a €10 million palatial mansion.
The article also went into his previous business history when he was a director of the stockbroking firm Money Markets International (MMI), with which he parted company in 1998. He later invested a substantial amount of money in Smart Telecom.
The article claimed Mr Fanning "narrowly escaped jail" after MMI collapsed when a charge of fraudulent conversion was dropped against him.
Mr O'Higgins told the court last Friday that Mr Fanning was never charged with any such offence and that he was a family man who had been fortunate enough to buy his current home for £350,000 in 1995 having sold his previous home in Leeson Park for £300,000.
Mr O'Higgins said Mr Fanning became chief executive and chairman of Smart Telecom, which got involved in litigation over its 3G licence. When the litigation was ending, Mr Fanning left the company as he had developed a tumour in his neck which later turned out to be benign.
After the article was published, Mr O'Higgins said, Mr Fanning was "horrified and outraged" and sought an apology, which was given the following week. That apology was of little value to Mr Fanning, who is now involved in a small gas exploration company, counsel said.