The High Court has dismissed an action taken by Century Homes co-founder, Gerard McCaughey, against Anglo Irish Bank and the Anglo-owned Mainland Ventures Corporation. Mr McCaughey had alleged fraud on the part of the bank in the way it promoted and managed the Anglo Irish New York Hotel Fund, a private equity investment.

It is reported that 50 high net worth individuals had invested an average of $1 million in the fund in 2006. The investors claimed that a promotional brochure given to them by the bank failed to disclose key risks involved in the investment and amounted to “conscious and deliberate dishonesty”. Rejecting these claims, the High Court found that a professional investor declaration signed by Mr McCaughey in connection with the investment was “valid and effective”, and further that warnings included in a commitment agreement signed by Mr McCaughey precluded him from pursuing claims other than fraud. The ruling will have adverse implications for 22 similar actions by other investors.