Virgin Group settles cruise lawsuit with Colin Veitch

The Virgin Group settled the $300
million lawsuit that former Norwegian Cruise Line CEO Colin Veitch filed
against it last year, alleging that Virgin had used Veitch’s plans for its
cruise line before cutting him out of the venture. 

The parties filed a joint notice of
the settlement to the U.S. District Court in Southern Florida on Jan. 25, and a
motion to dismiss the case the next day. 

In the lawsuit, filed last March,
Veitch contended that he had supplied Virgin and its founder Richard Branson
with a fully-formed plan for a cruise line, along with an investment bank for
financing the plan, and that Virgin Cruises executed those plans and used the
same investment bank.

Veitch, who headed Norwegian from
2000 to 2008, alleged that he was cut out of a lucrative share of the potential
profits from the Virgin venture after he had secured an agreement with a
shipyard to build two ships and arranged a management team.

Virgin denied the allegations,
stating last March that the company “strongly believes the claim has no
merits.”

“Richard Branson and the Virgin
Group first looked at the cruise market in the late 1970s, and our current team
has been exploring the opportunity for more than a decade. Over the years, we
have been in discussions with a number of parties, including the plaintiff, and
those discussions ceased in 2012,” the statement said.

The terms of the settlement were confidential, but the
parties released a joint statement saying they had “amicably resolved the action.”

“Mr. Veitch states
that he has always been a believer in the power of the Virgin brand to shake up
the cruise industry and looks forward to seeing the team deliver a unique
product to attract new consumers and expand the cruise market,” the statement
says. “Virgin and Virgin Cruises thank Mr. Veitch for his contribution
during the early phases of the project, given his long record of innovation and
industry insight. They wish him well for his future endeavors.”