Judge dismisses lawsuit over alarm company IPO
NEW YORK—A New York judge has thrown out a lawsuit seeking damages from Siemens First Capital Commercial Finance for canceling an initial public offering for a security alarm company, according to a Reuters article.
The judge dismissed breach of contract, breach of good faith and fair dealing, and breach of fiduciary duties claims against Siemens First Capital and three of its directors.
Siemens First Capital, a joint venture of Munich-based Siemens AG and Florida financial firm First Capital, said Alarm Funding LLP and two related companies’ failure to complete an IPO by March 1, 2011, constituted a default on an $85 million loan, the report said.
A hedge fund that was behind the three companies was the lead plaintiff in a lawsuit claiming there were no grounds for declaring default, saying no payment had been missed and $47 million of the loan had been repaid. The lawsuit alleged that by calling off the IPO, Siemens First Capital had deliberately destroyed the three security companies—Alarm Funding, Castlerock Security Holdings and Castlerock Security. The lawsuit sought at least $20 million in damages, according to the report.