DaimlerChrysler AG Accused of Defrauding Investors, Says The Pomerantz Firm
13 December 2000
DaimlerChrysler AG Accused of Defrauding Investors, Says The Pomerantz Firm
NEW YORK, Dec. 13 Pomerantz Haudek Block Grossman & Gross
LLP (http://www.pomerantzlaw.com) has filed a class action lawsuit against
Daimler-Benz AG ("Daimler-Benz), DaimlerChrysler AG ("DaimlerChrysler" or the
"Company") and certain other defendants, including officers and
directors of the Company. The case was filed in the United States District
Court for District of Delaware on behalf of all those persons or entities who
exchanged their Chrysler Corporation ("Chrysler") securities for
DaimlerChrysler securities (the "Class") pursuant to the merger between
Daimler-Benz and Chrysler.
The Complaint charges that defendants violated Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 by their alleged material
misrepresentations and omissions arising from Daimler-Benz's acquisition of
Chrysler in 1998. In particular, the complaint accuses defendant Jurgen
Schrempp, the longtime chairman and chief executive officer of Daimler-Benz
who is now chairman of DaimlerChrysler, of orchestrating a plan to mislead
shareholders into approving the merger. Defendants allegedly assured
shareholders that as part of a "merger of equals," Daimler-Benz and Chrysler
would operate as two equal companies with Chrysler's management remaining in
control of Chrysler's operations.
However, it is alleged that defendants never intended to honor such
commitments and never intended to have Chrysler run as an independent and co-
equal operation. Instead, their misrepresentations were a device to secure
shareholder approval, and then erode Chrysler's independence and replace its
management team. As a result, the trading value of the securities in
connection with the Merger, and the securities of DaimlerChrysler, declined
substantially in value.
If you are a member of the Class, you have until January 29, 2001 to ask
the Court to appoint you as one of the lead plaintiffs for the Class. In
order to serve as lead plaintiff, you must meet certain legal requirements.
If you wish to discuss this action or have any questions, please contact
Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or
(888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who
inquire by e-mail are encouraged to include their mailing address and
telephone number.
The Pomerantz firm is acknowledged as one of the premier firms in the
areas of corporate, securities, and antitrust class litigation. Founded by
the late Abraham L. Pomerantz, known as the dean of the class action bar, the
Pomerantz firm pioneered the field of securities class actions. Today, more
than 50 years later, the Pomerantz firm continues in the tradition he
established, fighting for the rights of the victims of securities fraud,
breaches of fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion dollar damages awards on behalf of class members.
The Pomerantz firm's Senior Partner, Stanley M. Grossman, leads a team of
attorneys who litigate in Courts throughout the United States. They have
received wide recognition from the Courts and other attorneys for their
competence.
CONTACT: Andrew G. Tolan, Esq.
Pomerantz Haudek Block Grossman & Gross LLP,
888-476-6529 ((888) 4-POMLAW)
agtolan@pomlaw.com