Judge Ends DaimlerChrysler Suit
A Federal Judge in Wilmington, Delaware dealt a decisive and final blow to dissident stockholder Kirk Kerkorian’s lawsuit against DaimlerChrysler.
The casino mogul sued the company more than four years ago for fraud over the 1998 merger of Daimler-Benz and Chrysler.
In response to the verdict, Terry Christensen, attorney for Tracinda Corporation, said, “While we are clearly disappointed in today’s judgment, we are pleased that other DaimlerChrysler shareholders who followed Tracinda’s lead and filed lawsuits based on our exact claims and key discovery were successful in reaching a settlement with DaimlerChrysler for $300 million. DaimlerChrysler admitted that they did not want a jury to hear those claims. It is obvious that as an individual shareholder, Tracinda was held to a different standard.
The message delivered by this result is unfortunate for all shareholders. Tracinda believed what Daimler said to the shareholders of Chrysler, the U.S. Securities and Exchange Commission and the employees of Chrysler. When the statements were later admitted to be psychological ploys, it did not matter.”
Kirk Kerkorian, Chairman of Tracinda Corporation, added,”The Americans were laughed at in the German Board meetings for having agreed to become a German corporation. Daimler management marveled at the success of their project Blitz and the takeover of an American icon.”
Tracinda is considering all of its options.
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