A SCOTS Pools syndicate which was cheated out of a #2.3m jackpot by a dishonest collector has dropped its legal battle after reaching an agreement with Littlewoods.

The five Scottish Power workers from Stirlingshire struck a deal after mounting legal bills forced them to reconsider their position.

Last night, both sides denied the syndicate had been ``bought off''. However, a gagging clause prevented syndicate members from explaining details.

Syndicate spokes-woman Mary Ferguson said: ``I can categorically say we have not been bought off. There has been no pay-out from Littlewoods''.

However, Mrs Linda Turner, wife of syndicate member Gordon Turner, said despite the deal they were still all ``desperately disappointed''.

She said: ``We simply couldn't afford to go on any more. There's no more money left to pay for lawyers. We used up all our life savings.

``We're annoyed it's come to this. Littlewoods are getting away with it.''

The syndicate poured their life savings, estimated at #35,000, to take Littlewoods to court.

Last month, as the money had just about run out, they approached Littlewoods and an agreement was reached.

The syndicate was cheated out of their jackpot after collector Cameron Baxter pocketed their #5 stake money.

His crime came to light only when the syndicate's coupon hit the jackpot.

Earlier this year, Lord Coulsfield dismissed the court action brought by the syndicate.

He ruled Scots courts were not able to become involved in actions aimed at recovering gambling debts.

The judge, sitting in the Court of Session, said only Parliament or a higher court could reassess the situation.

Littlewoods had always insisted it would never pay out to the syndicate members, Mr Gordon Turner, Mr Donald McVean, Mr Owen Kelly, Mr John Ferguson, and Mr Richard Syme.

Last night, Littlewoods insisted it had not bought off the syndicate.

A spokeswoman said: ``Littlewoods was fully prepared to defend its position before the Appeal Court and was confident of a successful outcome.

``We have made no out-of-court payment to members of the syndicate.''