Sacked ANZ bond salesman Patrick O'Connor has dropped his claim against the bank after he was dismissed for racking up tens of thousands of dollars of personal expenses, including the purchase of rare coins, on the corporate credit card.
In a media statement, ANZ said that Mr O'Connor had "decided to discontinue his legal action" and that no payment had been made by ANZ to Mr O'Connor. Each party will meet their own legal costs, the bank said.
Mr O'Connor had promised to reveal more embarrassing details about the behaviour of the senior ranks on the banks through the court process, led by Harmers Lawyers
Mr O'Connor said in a statement that he "thought long and hard about the undoubted very difficult fight ahead and the financial and emotional resources needed to continue my legal action"
"Reluctantly, taking many matters into consideration, I have decided that I am not prepared to put my family through that and so I have today instructed my lawyers to discontinue the case," he said.
Mr O'Connor and a sacked ANZ trader, Etienne Alexiou, made separate claims, first revealed in the Australian Financial Review, that a toxic culture within ANZ's global markets division tolerated and even encouraged behaviour that was at odds with official codes of conduct.
The sensational claims included visits to lap-dancing bars, accompanied by human resources staff, the presence of a 'white substance' in the dealing room toilets and drunken rampages at a luxury golf course.
Their claims to the courts sent shockwaves through the bank and led chief executive Shayne Elliott to pledge to a zero tolerance policy on bad behaviour.
In a statement on Friday ANZ the bank is "committed to taking disciplinary action where it finds instances of unacceptable behaviour."
"This includes an uncompromising stance with former employees where the bank considers legal disputes instigated by them to be without merit," the statement said.
Mr Alexiou's case against the bank is understood to still be proceeding.
Mr O'Connor, the former head of fixed income sales was sacked for running up expenses on his corporate credit card of $37,000 over one year including an $18,000 purchase of rare coins, a $7,468 rent payment to LJ Hooker and a $1,478 health insurance payment. He made a $2,740 payment for alcohol to a company called 'Loke' and three payments totalling $4,000 to Sydney hotels.
Mr O'Connor, who was awarded an $800,000 bonus was dismissed by the bank in October 2015. In his termination letter, ANZ also cited several lewd and derogatory electronic conversations on his Bloomberg terminal, and the fact that he did not disclose liabilities with other financial institutions when applying for a credit card.
Mr O'Connor said in a Federal Court filing that he suffered depression and hyperthymia, or extreme overactivity, and said ANZ had 'selectively and disproportionately' subjected him to 'investigation, suspension and termination' without attempting to 'modify his behaviour'.
This behaviour was 'required' by ANZ's culture, and as a result of his disabilities, he 'could not effectively control himself.'