The State has settled a €100 million claim for damages made against it by the cable company Chorus that has been before the courts for the past seven years.
Both sides in the legal dispute, which centred on the State's failure to shut down illegal television deflector firms in the 1990s, have agreed to pay their own legal costs. It is understood that the Government made no payment to Chorus in relation to the company's claim for damages.
The legal case for damages against the Government was first lodged in 1997 by Princes Holdings Ltd, which later rebranded as Chorus. The firm, which at the time was 50 per cent owned by Independent News & Media, accused the State of failing to meet assurances given to it by the then minister, Mr Ray Burke, that it would close down pirate stations.
Mr Burke issued the licence to operate a cable television firm in 1991 when he was minister for communications.
In the case, Princes Holdings alleged that illegal deflector systems operating across the State were preventing it from adding new subscribers for its service.
The State's failure to act against the deflector firms was raised by the Moriarty tribunal, which investigated whether Independent flexed its muscles to get government action on issues close to its commercial interests.
Correspondence unearthed at the tribunal showed that senior executives of both Independent and Princes Holdings wrote to the then taoiseach, Mr Bruton, blaming State inaction for the firm's mounting financial losses.
A year later, the Irish Independent carried a front page editorial, headlined "Payback Time" and calling on voters not to vote for the government parties.
The legal settlement between Chorus and the Government follows a decision by Independent to sell its stake in the firm for a nominal sum to Liberty Media earlier this year.
Chorus, which went into examinership in February 2004 with debts worth $385 million, would not comment on the detail of legal settlement yesterday.
However, it is understood the firm is keen to focus on its future operating performance in the competitive television market.
A Government spokeswoman confirmed a deal had been reached.
