The Financial Markets Authority has dropped civil proceedings against four Lombard directors as the failed finance company's receivers have reached a $10 million settlement with the men, their insurers and an unnamed "third party".
The receivers had made civil claims against the directors for alleged breach of duties but announced today a settlement had been reached.
The receivers said that the FMA had consented to the settlement, which involved former directors - Sir Douglas Graham, Michael Reeves, William Jeffries and Lawrence Bryant - as well as the men's insurers and a "third party".
Lombard receiver, PwC partner John Fisk, said he could not reveal who this "third party" was as it would breach the terms of the settlement agreement.
As a condition of the agreement, the FMA has dropped its civil proceedings against the directors, which were filed in the High Court in 2010 but were on hold.