No More War! Femi Otedola And Zenith Bank Plc Opt For Out-Of-Court Settlement

Otedola and his companies initiated legal action against Zenith Bank and the other defendants in March.

Billionaire businessman, Femi Otedola; the Chairman of First Bank of Nigeria Plc and majority shareholder of Geregu Plc, and some of his companies have reached an out-of-court settlement with Zenith Bank Plc -thus bringing what could have been a messy corporate war to a close. Otedola was involved in a legal dispute with the bank over alleged “fraudulent transactions” on his company’s accounts. The Federal High Court of Nigeria, Lagos Division, where Mr Otedola and his companies filed the suit against the lender on 12 March, dismissed the case on Thursday, 13 June, on receiving a notice of discontinuance from the plaintiffs.Zenon Petroleum & Gas Limited, Seaforce Shipping Co. Limited, Luzon Oil & Gas Limited, Garment Care and Mr Otedola were the plaintiffs, while Zenith Bank, Quantum Zenith Securities & Investment Limited, Veritas Registrars Limited and Central Securities Clearing System Plc were the defendants.

According to a court document, Justice A.O. Faji discontinued the lawsuit after the counsel for the first to third defendants and the counsel for the plaintiffs asked for the matter to be dismissed, with the “counsel for the fourth defendant not objecting.”

Recall that Otedola and his companies initiated legal action against Zenith Bank and the other defendants in March, claiming that the lender disposed of his shares in the bank without authorisation, manipulated the companies’ bank accounts and fabricated some documents to conceal the alleged crimes. According to sources, he chose to take legal action against the bank after several failed reconciliation attempts.

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