A New Jersey Superior Court judge dismissed a $3.2 billion lawsuit alleging that brokerage Morgan Keegan, hedge fund Exis Capital Management and other defendants had conspired to drive down the share price of Canadian firm Fairfax Financial in a ruling issued today.
Fairfax sued Morgan Keegan, Exis and other hedge funds in 2006, alleging that defendants bet against Fairfax stock, then attempted to drive down share prices by engaging in a campaign to spread negative information. While charges against hedge funds such as Steven A. Cohen’s SAC Capital, James Chanos’ Kynikos Associates and Dan Loeb’s Third Point were dismissed in a series of earlier decisions, the New Jersey court had agreed to consider a portion of the original suit.
After hearing pretrial arguments on various claims for damages, Judge Donald S. Coburn dismissed all charges against remaining defendants, including Exis executives Adam Sender and Andrew Heller, said Mark Werbner, an attorney for Exis, in a phone interview with The Observer. Read More