Australia & New Zealand Banking Group Ltd. said today that the bank has settled the legal dispute with former senior executive Steve Targett. The Bank said that Targett has dropped his long running legal case against the bank without receiving any payment.

Steve Targett, who was working with the banking group as the head of bank's institutional business till June 2007, filed a lawsuit against the bank for $57 million after being passed over as chief executive.

Targett sued ANZ for allegedly misleading and deceptive conduct and breach of contract. Targett claimed in his lawsuit that the bank misled him about the state of the institutional banking division and his career prospects. Targett was seeking $57 million in pay which he claimed he would have received if the bank had appointed him to the chief executive role.

Mr. Targett, who is now working with Bank of Beirut as the head of its UK operations, has now agreed to discontinue his case against the bank. The agreement has come just days before the hearing in Federal Court. ANZ said that the bank has received a deed of release signed by Targett.

"No payment will be made by ANZ to Mr. Targett and each party will meet their own legal costs,'' ANZ said in a statement.