After what has been a long and at times bitter battle, the case was due to resume today in the Commercial Court in Dublin, and had been scheduled for an eight-day sitting. However, Justice Peter Kelly was told that following last minute discussions, the matter had now been fully resolved.
The case has been adjourned until June 10, but only to allow for implementation of the settlement.
Having founded the Electric Picnic in 2004, Reynolds sold a 71% stake in the Stradbally event to Festival Republic in 2009 for €4.2 million. This year's event takes place later this summer, from August 29-31.
While no figures were revealed, the settlement involves the sale of the balance of John Reynold’s shareholding in the event to the other shareholders.
Following this afternoon's developments, a statement was issue by Festival Republic Dublin.
"EP Festivals is pleased to report that an agreement has been reached between POD Music and Festival Republic Dublin regarding Electric Picnic," it reads. "As part of the agreement, POD Music, a co-shareholder in Electric Picnic, has agreed to divest its stake to Festival Republic Dublin. Festival Republic Dublin would like to thank John Reynolds, director of POD Music, for his contribution to the successful development of Electric Picnic and wish him well for the future.
"Electric Picnic looks forward to welcoming its fans for this year's event on 29th August 2014 for three days with Portishead, OutKast, Beck, Foals, Pet Shop Boys, Paolo Nutini, Chic featuring Nile Rodgers, Lily Allen, Blondie, Simple Minds, Sinéad O'Connor, Mogwai, James Murphy and many more…"