F1 CEO Bernie Ecclestone has had a $650M lawsuit against him by American investment firm Bluewaters "dismissed" in the N.Y. Supreme Court, according to Christian Sylt for AUTOWEEK.
Bluewaters said that "it was the highest bidder when F1 was sold to private equity firm CVC" in '06 for $2B. The lawsuit claimed that Ecclestone and his Bambino family trust paid a $44M bribe to Gerhard Gribkowsky, the German banker in charge of the sale, so that "he would steer F1 to CVC." On Tuesday, Supreme Court Justice Eileen Bransten "ruled against Bluewaters" because "the 'critical events' underlying the claims in this lawsuit took place in Germany, England and elsewhere in Europe."
Although Bluewaters itself is now based in N.Y., "at the time of its offer for F1 it was located on the island of Jersey off the coast of England" -- which is also the home of F1's parent company Delta Topco. Bransten said that "this action is not about a lost business venture in New York, but rather on allegations that an English citizen bribed a German citizen to compel a German bank to sell its interest in a Jersey company to an English company rather than another Jersey company" (AUTOWEEK, 1/21). In London, Kevin Eason reported costs "were awarded against Bluewaters and it is not known whether the company will try again with its failed claim."
For Ecclestone, "it is a moment of relief in the legal assault." He is still waiting for a verdict in the $140M claim brought by Constantin Medien, a Germany media company, in the High Court last year.
Meanwhile, BayernLB has announced that it "will pursue a damages claim" worth an estimated $400M in London, too, rather than Germany, where the bank is based (LONDON TIMES, 1/22).
