U2 drummer Larry Mullen lost an estimated €11million as a result of bad investments made on his behalf, it was alleged in the High Court in Dublin yesterday. The legal action, which began in July 2013, was yesterday refused fast-tracking to the Commercial Court. Mr Justice Brian McGovern ruled that such an application should have arrived sooner, since the action has been ongoing for over 12 months.

Mullen’s case alleges that Gaby Smyth and Company, including accountant Gaby Smyth and two other members of the firm, Jill Percival and Pat Cleary, failed in their advice to Mullen and his partner Ann Acheson and that the firms unsuitable advice resulted in a loss of some €11m.
The court was told that, as well as accountancy services, the company acted as advisers and managers for Mullen’s financial interests. Among the decisions taken by the company were a €3 million investment in a European hotel fund; and a €4.5 million investment in property in Romania. In papers before the court, Mullen and Acheson said that they had instructed Gaby Smyth & Co to take a conservative and low risk approach to investments made on their behalf. An additional loan of €4.5 million was taken out, on joint and several terms with other parties and it is claimed that the accountancy firm failed to inform the couple of crucial details in respect of that loan.

The firm was previously the subject of legal proceedings taken by U2 bassist Adam Clayton, who sued for €4.8m. He alleged negligence and breach of contract in a case taken against Gaby Smyth and Bank of Ireland, following the misappropriation of funds of approximately €2.8 million by his former PA, Carol Hawkins. The case was settled in February of this year.