New Jersey Superior Court Judge Stephan C. Hansbury dismissed Fairfax Financial’s $8 billion lawsuit against Jim Chanos’ Kynikos and Dan Loeb’s Third Point. “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,” Hansbury said.
So the case had nothing to do with New Jersey.
Fairfax Financial managed to uncover Dan Loeb’s email to Exis Capital’s Adam Sender. “Prem Watsa bend over the hedge funds have something special for you” Dan Loeb wrote in the email. Dan Loeb’s hedge fund thrived since Prem Watsa’s lawsuit. Unfortunately the picture wasn’t rosy for Adam Sender. “We haven’t been able to raise any significant capital since Fairfax of Canada sued us in 2006” Adam Sender said.
Jim Chanos doesn’t seem to be caring too much about the Fairfax lawsuit. He is busy with spreading rumors/research about China. Time will tell whether those rumors are false or not.
By the way, we started tracking Prem Watsa’s portfolio. His two biggest positions are Johnson&Johnson (JNJ) and Dell. Whitney Tilson is also bullish about Dell.