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U2 bassist Adam Clayton sues band's moneyman for 'negligence'


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U2 bassist Adam Clayton sues band's moneyman for 'negligence'

Daily Mail,June 12, 2010

By: Brian Carroll

 

U2bassist Adam Clayton is launching a High Court legal war which couldrip the world's leading rock band apart, the Irish Mail on Sunday canreveal.

Clayton is suing the band’s financial mastermind Gaby Smyth foralleged negligence in a case that  could see U2's labyrinthine financesexposed before the world.

Dublin-based Smyth is often described as 'financial controller' ofall U2 group companies and knows every detail of the band's earnings.

He is also thought to have masterminded the highly controversialdecision to avoid Irish taxes by moving the U2 publishing operation toHolland, which has a far lower rate of tax on royalties.

That decision, revealed by this newspaper three years ago, has ledto furious and sustained criticism of the band -- especially given theanti-poverty campaign of their currently injured frontman Bono.

The prospect of Clayton lining up in court against the band'sfinancial mastermind will alarm those who already fear that musicaltensions, coupled with Bono's crippling back injuries, threaten to tearthe group apart after more than 30 years together.

It will be 50-year-old Clayton's second High Court action in the space of six months.

In January, the High Court agreed to freeze the assets of Clayton'sformer housekeeper, Carol Hawkins, after the court heard claims thatshe had defrauded him of up to €1.8million.

Now Clayton has lodged papers at the High Court signalling hisintention to bring a negligence claim against Smyth and two otheraccountants -- Jill Percival and Pat Cleary -- in Smyth’s company.

The papers, lodged by Clayton on June 4, confirm the plenary summonsrelates to alleged 'negligence.' However, the detail of the claim isnot yet known, as Clayton has until July 4 to issue formal summons toSmyth and his co-defendants.

It's thought the case has its roots in issues brought to Clayton's attention in his case against Carol Hawkins.

The ease with which his former housekeeper was allegedly able totake €1.8million from his accounts, taking €600 a day from his debitand credit cards for up to three years, alarmed Clayton.

The housekeeper allegedly used the money to go on a spending spree,which included the 2007 purchase of a $465,000 New York apartment, carsand jewellery, as well as living a rock star lifestyle far beyond hermeans.

At one stage, she was spending €900 a month maintaining racehorses.

A source close to Clayton said: 'It would be unwise to assume thatthis case relates to the case against his housekeeper, but that's notto say it has nothing to do with her.'

In preparation for the case against Mrs Hawkins, Clayton instructedtwo accountants, including Kieran Wallace of KPMG, to review hisfinancial arrangements and all his personal accounts.

While it is not clear if his negligence claim against U2'saccountant relates to matters which arose in this review, the claimdoes concern investments made on the musician’s behalf, andprofessional advice offered by Gaby Smyth & Co. A fourth defendantin the case is Bank of Ireland Private Finance.

This branch of Bank of Ireland handles investments on behalf of highnet worth individuals, offering 9 per cent annual returns on minimuminvestments of €250,000 or more.

Clayton has retained Gleeson McGrath Baldwin to act on his behalf against Smyth and the bank.

The managing partner at Gleeson McGrath Baldwin is Frank Murphy, anexpert in commercial law, who specialises in media and entertainmentcontracts.

He was called as an 'independent expert' when celebrity chef ConradGallagher was sued by the Fitzwilliam Hotel over the alleged theft ofpaintings.

Mr Murphy's evidence proved crucial in the case, casting doubt overwhether the hotel actually owned the paintings at the centre of thecase.

It was that evidence which ultimately helped secure an acquittal for Gallagher.

Murphy is overseeing Clayton's case against U2's accountant and Bankof Ireland, together with Geraldine Clarke, head of the firm'slitigation department and a former president of the Law Society.

In addition to Gaby Smyth and Bank of Ireland Private Banking, there are two other listed defendants.

Jill Percival and Pat Cleary are both accountants who work forSmyth, with the latter noted for his expertise in advising televisionand film industry executives about tax efficiency.

Smyth & Co. acts for Screen Producers Ireland as a tax adviser to producers and artists engaged in the visual arts.

© Associated Newspapers Ltd., 2010.

 

 

 

 

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"If roadies ran the world!" That Sprint commercial.

 

So from that view point. Keep it simple!

 

1. Recover the money from the financial adviser and get rid of him.

 

2. Hire a new one.

 

3. Move on....continue w/the tour, and release a new album!

 

According to this post, it's not Adam vs. U2.

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Daily Mail? Oh yeah, the band is deffo splitting up over their pocketmoney allowances!!!!

 

Move on people.

Daily Mail is on the same level as The Sun- printing entertainment stories as front-page news, rather than more serious news like the ongoing BP oil crisis.
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[quote name='peterferris8 wrote:


Ragoo']Daily Mail? Oh yeah, the band is deffo splitting up over their pocketmoney allowances!!!!

 

Move on people.

Daily Mail is on the same level as The Sun- printing entertainment stories as front-page news, rather than more serious news like the ongoing BP oil crisis.right on, Peter...

 

Keep your chin up

 

You're a bright young ladsmile.gif

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[quote name='xtraspicy62 wrote:


peterferris8 wrote:

Ragoo']Daily Mail? Oh yeah, the band is deffo splitting up over their pocketmoney allowances!!!!

 

Move on people.

Daily Mail is on the same level as The Sun- printing entertainment stories as front-page news, rather than more serious news like the ongoing BP oil crisis.
right on, Peter...

 

Keep your chin up

 

You're a bright young ladsmile.gif

 

and there is a reason why tabloids dont focus on real serious issues, its because there are so many new channels, news channels are not bothered by how many copies papers sell. at the same time you wont hear news about u2 on news channels thats why whenever its news about celebs, you more likely to find it in a newspaper.

 

but its news about u2 for the wrong reasons, and it looks pretty serious to ignore just because it was in the daily mail.

 

but saying that they forgot to mention adam is bono's best friend, but in truth we really dont know the ingoings in the u2 camp.

 

i hope this is resolved quickly and doesnt turn into a mess.

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..

but saying that they forgot to mention adam is bono's best friend, but in truth we really dont know the ingoings in the u2 camp.

 

i hope this is resolved quickly and doesnt turn into a mess.

that's good one !

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[quote name='MacFoley wrote:


xtraspicy62 wrote:

peterferris8 wrote:

Ragoo']Daily Mail? Oh yeah, the band is deffo splitting up over their pocketmoney allowances!!!!

 

Move on people.

Daily Mail is on the same level as The Sun- printing entertainment stories as front-page news, rather than more serious news like the ongoing BP oil crisis.
right on, Peter...

 

Keep your chin up

 

You're a bright young lad
smile.gif

 

and there is a reason why tabloids dont focus on real serious issues, its because there are so many new channels, news channels are not bothered by how many copies papers sell. at the same time you wont hear news about u2 on news channels thats why whenever its news about celebs, you more likely to find it in a newspaper.

 

but its news about u2 for the wrong reasons, and it looks pretty serious to ignore just because it was in the daily mail.

 

but saying that they forgot to mention adam is bono's best friend, but in truth we really dont know the ingoings in the u2 camp.

 

i hope this is resolved quickly and doesnt turn into a mess.

It seems that this is going to be a serious case and I hope that it gets sorted out without too much mess etc... Like you say Mac, just becuase it is in the Mail doesn't mean that it is not serious, but the paper has sensationalised it in a totally over the top way and have tried to make it sound that it is something which the rest of the band don't agree with. We will never know what is going on in the U2 camp over this - but I should imagine that the whole thing has been discussed before the court case and Adam has the support of the rest of the band.

And I hope that at the same time the Daily Mail journalists get the chance to go to journalism school and actually write an interesting and factual article for once in their paper instead of finding half a tale and making up the other half and publishing it as a true story - albiet a badly written and grammatically incorrect story 

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