The U.S. hedge fund Cartica Capital struck out on Friday in a lawsuit alleging that Chilean billionaire Alvaro Saieh Bendeck engineered a fraud-riddled, multibillion-dollar South American bank merger involving his company, CorpBanca SA.
Siding with defense lawyers at Simpson Thacher & Bartlett, U.S. District Judge P. Kevin Castel in Manhattan dismissed claims that Saieh misled Cartica, a minority CorpBanca shareholder, about the merger. Castel ruled that Cartica didn’t purchase or sell securities in connection with the alleged fraud, and therefore it can’t seek injunctive relief under Section 10(b) of the Securities Exchange Act of 1934, the key tool for combating securities fraud.
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