Daimler-Chrysler Update

As discussed previously in The 10b-5 Daily, Chrysler Corp.’s former shareholders have brought a class action in the D. of Del. alleging that Daimler-Benz misrepresented the acquisition of Chrysler as a “merger of equals” to avoid paying them a takeover premium for their shares. The court recently certified the class and things are continuing to go well for the plaintiffs. The Associated Press reports that Judge Farnan has denied the portion of Diamler-Benz’s summary judgment motion based on the statute of limitations.

Quote of note: “In his ruling on DaimlerChrysler’s statute of limitations argument, Farnan wrote: ‘I agree with the plaintiffs’ assertion that they could not have known that the merger-of-equals representations were false until Schrempp revealed his true intent in the Financial Times article.’ Farnan has not yet ruled on other parts of DaimlerChrysler’s motion for summary judgment.”

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