Mas
09-29-2006, 11:21 PM
A federal judge dismissed a fraud action lawsuit against DirecTV this week saying the allegations were without merit. The judge also ruled that Darlene Investments, the company which brought the suit, was liable to the nation's largest satellite TV provider for breach of contract.
Federal District Court Judge William H. Pauley III dismissed the suit against DirecTV which sought over $1 billion in damages. Pauley not only threw out the claims of Darlene Investments - owned by The Cisneros Group of Companies and Bessemer Holdings - but ordered the company liable to DirecTV for breach of contract. The dispute stemmed from a series of transactions between the two companies in connection with DirecTV Latin America's emergence from bankruptcy in February 2004, reports said.
Larry Hunter, DirecTV's general counsel, said the company is pleased with the judge's decision and that Darlene's claim should never have been filed.
According to reports, DirecTV will now seek to recover its legal costs related to the litigation and prepare for a separate arbitration proceeding between the companies beginning in January.
Federal District Court Judge William H. Pauley III dismissed the suit against DirecTV which sought over $1 billion in damages. Pauley not only threw out the claims of Darlene Investments - owned by The Cisneros Group of Companies and Bessemer Holdings - but ordered the company liable to DirecTV for breach of contract. The dispute stemmed from a series of transactions between the two companies in connection with DirecTV Latin America's emergence from bankruptcy in February 2004, reports said.
Larry Hunter, DirecTV's general counsel, said the company is pleased with the judge's decision and that Darlene's claim should never have been filed.
According to reports, DirecTV will now seek to recover its legal costs related to the litigation and prepare for a separate arbitration proceeding between the companies beginning in January.