In a dramatic outcome to a highly charged battle, Cantor Fitzgerald has settled its legal case with former executive Stephen Drummond.
The interdealer broker claimed Mr Drummond failed to repay a $2m loan provided to buy a house after he deposited most of the money with Icelandic bank Kaupthing, which later collapsed.
In the battle at the High Court last week – which saw Cantor chief Howard Lutnick fly in from New York to give evidence – the broker said Mr Drummond, who headed carbon trading arm Cantor CO2e, had sought $2m to buy a house in Oxford.
It alleged that both sides agreed to a series of transactions where Mr Drummond would stay at Cantor for a minimum of five years and sell his shares in a division of CO2e for $2m. He also signed a promissory note which provided for the repayment of $2m in certain circumstances.
Mr Drummond put a $300,000 deposit on his house and in September 2008 deposited $1.7m into Kaupthing, which collapsed shortly afterwards.
Cantor dismissed Mr Drummond in early 2009, when he failed to disclose he had been approached by rival EcoSecurities.
Mr Drummond claimed he was wrongfully dismissed and did not owe Cantor money.
On Tuesday, Cantor said Mr Drummond had now “agreed to repay the loan from Cantor and to pay Cantor’s costs in this action”.
It also said he had withdrawn his claims against Cantor and apologised to the firm. Mr Drummond was unable to be reached for comment.
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