The High Court yesterday issued directions for the conduct of legal proceedings against Development Capital Corporation (DCC), its chief executive, Mr Jim Flavin and two subsidiary companies over dealing in Fyffes' shares.

Two pension funds, Hibernian Investment Managers Limited and Eagle Star Life Assurance Company of Ireland Ltd are seeking compensation from DCC for losses allegedly sustained arising out of their purchase of ordinary shares in Fyffes in early February, 2000. On consent of the parties, Mr Justice Kearns directed the matter should proceed in a manner similar to plenary summons and for documents to be exchanged between the parties in accordance with court rules. The judge adjourned generally all other reliefs being sought in the proceedings.

Before the pension fund actions, Fyffes obtained leave to begin proceedings against DCC, the same two subsidiaries and Mr Flavin. Fyffes claims Mr Flavin had taken advantage of confidential financial information. Mr Flavin has rejected the claim and DCC denied allegations of insider trading, in a statement to the Irish Stock Exchange.