David Ross's Cosalt reaches £2.5m fraud settlement The company said it had agreed an outline settlement with Calum and Stuart Melville, the former employees it had been suing for losses suffered as a consequence of the alleged fraud. Two years ago Cosalt uncovered a series of what it called "doubtful transactions" with a supplier linked to Calum and Stuart Melville. Over 90pc of cash paid to Meapac was diverted into a bank accounts linked to Calum Melville. Although Cosalt has not revealed the size of its loss or the level of settlement the Scottish high court hearing the case has granted a £2.5m order against Meapac and in favour of Cosalt. In a statement Cosalt said: "Shortly before trial, the company was approached by representatives of Calum and Stuart Melville with an offer to settle in advance of the court case being heard in public. While the company has rejected all previous offers to settle, it has agreed in principle to accept the latest offer and heads of terms have been signed. The alleged fraud is the latest in a string of controversies for the listed oil services group. The company was bailed-out by Mr Ross through a series of loans after poor results led to a slump in its share price and mounting debts. A series of offers to buy out the company by Mr Ross were rejected by shareholders leading to the company's shares being suspended earlier this year. The company said it was still working on a formal settlement with Calum and Stuart Melville but assuming agreement can be reached terms would be disclosed next week. The case has been suspended until October 2.