Wholesaler Hyperama’s £1m court case against two former directors accused of fraud has been resolved in an undisclosed out-of-court settlement.

In November, betterRetailing revealed court claims that Ali Guvemli and Aris Poulis fraudulently diverted “secret profits” and also conspired to hand confidential company documents to rival Bestway.

The claims were strongly denied by the directors and Bestway.

In further documents obtained by betterRetailing this month before settlement, Guvemli’s defence claimed: “Issued costs for all parties have exceeded £1m.” It added this would rise to £2m if it went to trial.

However, a new statement from Hyperama managing director Marcus Singh said: “All court proceedings […] have now been resolved in an out-of-court settlement, which brings matters to a conclusion.”

Settlement terms were not disclosed.

Read more: Hyperama accuses ex-directors of fraud and Bestway conspiracy