The former New Star fund manager Patrick Evershed has dropped his £1m claim for unfair dismissal after agreeing a secret deal with the asset management firm, it was revealed yesterday.
The news was published in a short statement which reported that New Star – now owned by the Henderson Group – and Mr Evershed had reached an agreement "which resolves the employment tribunal proceedings without admission of liability". It continued: "Both parties are satisfied with the terms of the agreement and have agreed to keep them confidential."
The case – which began in November and was set to continue early next year – had been notable for revealing Mr Evershed's evidence of widespread bullying at the firm.
He claimed at one point that New Star's former boss John Duffield would prowl the firm's offices offering sweets to fund managers – before withdrawing the offer from those he thought were performing badly.
In Mr Evershed's evidence he called Mr Duffield "vile" as well as accusing him of being "angry, antagonistic and unpleasant". He also claimed Mr Duffield regularly called another fund manager "a moron and a criminal".
The court heard that Mr Evershed –a Tory grandee – lost his temper on his last day and called New Star's chief investment officer, Gregor Logan, a "despicable berk" and a "vile little runt".
New Star claimed Mr Evershed had a history of using the press and politicians for his own gains. The firm's lawyer told Mr Evershed: "The press was a tool you were not afraid to use."