Delaware Judge Approves Class-Action Status for Lawsuits Against DaimlerChrysler

DETROIT June 12, 2003; The AP reported that a Delaware judge has approved class-action status for lawsuits against DaimlerChrysler AG, brought by shareholders including billionaire Kirk Kerkorian, over the 1998 Daimler-Benz/Chrysler merger.

U.S. District Court Judge Joseph J. Farnan Jr.'s decision Wednesday consolidates some of the claims. Kerkorian, whose Tracinda Corp. once held 14 percent of the former Chrysler Corp.'s stock, says shareholders were duped into approving the deal.

DaimlerChrysler issued a statement saying the ruling on the class certification motion was "routine and not unexpected." The company said its motions for dismissal have merit and likely will be addressed by the court.

Kerkorian's suit claims Daimler-Benz chairman Juergen Schrempp -- now DaimlerChrysler's boss -- and other company officials misled shareholders to cheat them out of their rightful acquisition fee. Kerkorian says Tracinda would not have voted for the union had he known it was really a takeover.

"It ups the ante for the defendants for dealing with the class-wide claims." said lawyer Richard Bemporad, who represents investment fund Glickenhaus & Co. in suing DaimlerChrysler.

DaimlerChrysler has said Kerkorian not only approved of the acquisition but pushed for its completion, and that a Tracinda executive sat on Chrysler's board during the process.