Ex-Broker Blames Dow Jones for Report on Fake Dayton Bid

A former stock broker, who is the target of three lawsuits as a result of a bogus takeover bid for Minneapolis-based Dayton Hudson Corp., says the news service that disseminated reports of the purported tender offer is to blame.

In documents filed this week in U.S. District Court here, P. David Herrlinger of Cincinnati contends that Dow Jones News Service breached its duty to its subscribers by transmitting reports of the offer without adequately checking their accuracy.

Everett Groseclose, managing editor of Dow Jones in New York, on Wednesday denied Herrlinger’s charge.

He said the news service verified Herrlinger’s background before transmitting the offer.

Herrlinger, 46, was fired by Capital Management Corp. after the company learned of the June 23 bid.

“At the time he made those statements to Dow Jones’ Cincinnati office,” Herrlinger said in his court filing, “as was apparent to any rational observer, Herrlinger was suffering from an illness which rendered him incapable of comprehending the nature and consequences of his actions.” Herrlinger contends that Dow Jones was “reckless and-or grossly negligent” and should be held liable for any damages assessed against him.