A former investment director with ICC Venture Capital yesterday settled her constructive dismissal case with Bank Of Scotland (Ireland) which now owns ICC.

Ms Prisca Grady, a former investment director with ICC Venture Capital, told an earlier Employment Appeals Tribunal in July that she was forced to resign after she became traumatised by bullying and sexual harassment.

Ms Grady told the July tribunal that after her resignation from her £100,000 (€127,000) plus per year job in mid-2000 she became suicidal and for some months spent most of her time in bed.

When leaving the group, Ms Grady surrendered millions in carried interests that she would have been entitled to as a partner at ICC, the July tribunal heard.

She also alleged Mr Tom Kirwan, deputy managing director of ICC Venture Capital, had sometimes behaved inappropriately when the two met alone in Mr Kirwan's office to discuss business.

The July tribunal heard that, at some meetings, Mr Kirwan had looked her up and down in a suggestive manner and had "gyrated" his hips. Mr Kirwan sat in his seat, pulled it in close to his desk, put his hands below the desk and gyrated his hips, it was alleged. The July hearing was also told at some of these meetings Mr Kirwan's "lips would redden" and his "eyes would glaze over".

The bank rejected all of Ms Grady's allegations and it was put to her at the July hearing that some of her evidence was fabricated.

Since Ms Grady's resignation, ICC Venture Capital and ICC Capital Markets have merged and become Bank of Scotland (Ireland).

At another Employment Appeals Tribunal in May, Ms Grady's legal counsel said his client would make allegations of mismanagement of funds and excessive profit-taking, both of which the bank denied.

Upon resigning from ICC, Ms Grady had a six-month period to lodge a case against the group. She lodged her case one day after that period. But the July Employment Appeals Tribunal, under the chairmanship of Mr Dermot McCarthy, ruled that exceptional circumstances existed which had led to the complaint being lodged late.

Mr Carthy said Ms Grady "rightly or wrongly" believed after almost six months away from the bank that she had lost the goodwill of her former employer and that she feared her career progress would be blocked by some of her former colleagues.

The substantive case was due to begin yesterday but both parties agreed on an undisclosed settlement. During a very brief hearing yesterday, the tribunal was told by Mr Richard Nesbitt SC for Ms Grady that the matter had been brought to an end. "That is the end of the matter as far as we are concerned," he said. Ms Grady said afterwards she was "absolutely delighted" with the outcome of the case. She said it had been a "long hard battle, but well worth it".

A spokesman for the Bank of Scotland (Ireland) said: "The bank is pleased that this matter has come to a satisfactory conclusion."