Jim Chanos’ Kynikos Associates LP and Daniel Loeb’s Third Point are having a brighter holiday season after they “won dismissal from an $8 billion lawsuit accusing the two hedge funds of spreading negative information to drive down Fairfax Financial Holdings Ltd. (FFH)’s stock price,” reports Bloomberg.
Hansbury had dismissed Steve Cohen and his SAC Capital Advisors from the case in September. FFH had sued the hedge funds in 2006. The company alleged that they had acted to harm the company by betting that its share price would fall. The hedge funds denied the accusations.
Hansbury explained the reason for his dismissal of the charges, saying, “One must establish that the defendants purposely availed themselves of the State of New Jersey and that the alleged improper conduct was expected or intended to be felt within the State of New Jersey,” and Fairfax didn’t do that. “We are gratified by the court’s decision, but otherwise have no comment,” said Chanos.
According to Bloomberg, FFH plans to appeal the decision.