Birmingham City abandon lawsuit against David Sullivan and David Gold

Birmingham City have dropped their lawsuit against the club's previous owners, David Sullivan and David Gold, and four former board members after the two parties agreed an undisclosed settlement. Carson Yeung, the Birmingham owner, was unhappy with aspects of the financial situation he inherited at St Andrew's after completing his £81.5m takeover of the club last year and his representatives took their claim for £5m in compensation to the high court in April. Sullivan immediately signalled his intention to countersue for £2m in allegedly unpaid expenses but the prospect of a protracted legal battle has now been averted. A statement on the Birmingham website said : "Birmingham City Football Club can confirm that a settlement agreement has been reached between themselves and the previous owners for an undisclosed figure. The club shall cease the civil suit it had instituted and all related actions regarding this. As fellow members of the Premier League, both parties agree that this is a good settlement to ensure our continued friendship."