Judge Says No Merit to Daimler Claim

A Delaware judge has denied part of DaimlerChrysler’s request to dismiss lawsuits involving the multibillion-dollar merger of Daimler-Benz and Chrysler, but the German-American automaker says it “remains committed to a vigorous defense of these cases.”

Chrysler shareholders, including billionaire investor Kirk Kerkorian, claim they were duped into approving the 1998 deal that combined Chrysler and Daimler-Benz when executives from both companies portrayed it as a merger of equals.

U.S. District Judge Joseph J. Farnan Jr. said there was no merit to DaimlerChrysler’s claim that numerous newspaper and magazine articles were among “storm warnings” that the deal was not a merger of equals.

Shares of DaimlerChrysler rose $1.45, or 4.4%, to $34.26 on the NYSE.