New Jersey Court Clears Exis Capital in Fairfax Financial Hedge Fund Lawsuit

 

New Jersey Superior Court Judge Donald Coburn of Morristown today dismissed a multibillion-dollar lawsuit filed against New York-based hedge fund Exis Capital Management Inc., fund manager Adam Sender and other defendants after ruling that the damages claim filed by Canada’s Fairfax Financial Holdings Ltd. was not supported by law.

 

The court’s decision brings an end to the long-running lawsuit, which originally was filed by Toronto-based Fairfax in 2006 against a large group of hedge funds that were accused of conspiring with financial analysts and researchers to organize a “bear raid” by allegedly spreading false rumors and driving down Fairfax’ stock price.

 

Fairfax had sought as much as $8 billion in damages, with the company’s remaining claims totaling approximately $3.2 billion against Exis Capital, Mr. Sender, Exis Capital Chief Operating Officer Andrew Heller and Memphis, Tennessee-based Morgan Keegan & Co. (now known as Raymond James Morgan Keegan). The expected six-week trial was scheduled to begin today.

 

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