Judge rules for Marriott in suit – bondholders suit against executives – Brief Article
BALTIMORE — A district judge here ended a two-year legal battle by dismissing a lawsuit brought by a group of Marriott Corp. bondholders against Host Marriott Corp. and several high-ranking executives of the company.
The suit, filed by 11 institutional bondholders, was sparked by Marriott’s 1992 decision to separate into two companies, Host Marriott and Marriott International. The investors had charged that company officials, including Marriott International chairman J. Willard Marriott Jr., Host Marriott chairman Richard E. Marriott and chief financial officer Stephen Bollenbach, knew of the impending split before the sale of some $400 million worth of corporate bonds in 1992. After the split was announced, the value of the bonds dropped by 30 percent.
Judge Alexander Harvey cited a “lack of evidence” against Marriott and denied the plaintiffs’ motion for a new trial, awarding defendants their costs of litigation.
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