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Court Victory for DirecTV

DirecTV Group was victorious in a Federal District Court Wednesday.

Judge William H. Pauley III of the Southern District of New York dismissed Darlene Investments’ fraud action against the direct-broadcast satellite provider and declared Darlene liable for its breach of contract.

The case involved a series of transactions between DirecTV and Darlene in connection with DirecTV Latin America's emergence from bankruptcy in February 2004. Darlene -- which is owned by The Cisneros Group and Bessemer Holdings -- had been seeking more than $1 billion in damages.

DirecTV said it will seek to recover all of its legal fees and expenses related to the lawsuit. A separate arbitration proceeding between the parties is scheduled to begin in January.

"DirecTV is very pleased with the court decision," general counsel Larry D. Hunter said in a prepared statement. "The decision confirms that Darlene's allegations were without merit and that this claim should never have been filed."