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Lawsuit Against DaimlerChrysler Rejected

AP
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A German court on Thursday rejected a lawsuit brought by DaimlerChrysler shareholders who claimed that the company did not announce in proper time that former chief executive Juergen Schrempp planned to step down.

The Stuttgart state court ruled that the July 2005 announcement had been made in a timely way.

It found that the company had no obligation to announce Schrempp's departure before its supervisory board made a formal decision, and was not obliged to announce earlier that discussions had taken place on a possible changeover.

Schrempp was replaced as CEO by Dieter Zetsche.

DaimlerChrysler shares, which have been lifted by speculation that the automaker could ultimately part company with its troubled U.S. Chrysler unit, were up nearly 6% at 54.58 euros ($71.35) in morning Frankfurt trading.