St. LOUIS () -- The Supreme Court of the State of New York today dismissed a civil suit filed by Dan Ascani and Gemini Diversified Holdings against the World Gold Council (WGC) over the alleged misappropriation of trade secrets and violation of a Confidentiality Agreement pertaining to the StreetTracks gold ETF.
"We have always known that this case had no merit, and we are pleased that it has now reached its conclusion," said James Burton, CEO of the World Gold Council.
The lawsuit, which dates back to November 2003, alleged that WGC took Ascani's idea for an ETF, and then developed a "suspiciously similar product." Ascani charged WGC with misappropriation of trade secrets under the Georgia Trade Secrets Act and the violation of a Confidentiality Agreement signed in April 2000, when that confidential information was released in a May 2003 SEC filing.
But today, in a , Ascani apologized for launching the suit and agreed to never sue WGC again in relation to product arising from the company or its subsidiaries.
"I acknowledge that the World Gold Council did not misappropriate any trade secret belonging to me .... I acknowledge that the World Gold Council did not breach any Confidentiality Agreement with me.... I have learned through the trial of this action that my lawsuit against the World Gold Council was entirely without merit, and I apologize to World Gold Council for suing them."
Ascani had originally sought damages in excess of $450,000. Ascani's attorney, Charles Hecht of Hecht & Associates, told RI: "Under the terms of the settlement, neither I nor Mr. Ascani can comment on the terms." Ascani confirmed this with RI.
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StreetTracks Gold Shares [NYSE:GLD] is the largest gold ETF with nearly $9 billion in assets. The fund reports 441.52 tonnes in trust, representing about 14.2 million ounces, with 143.1 million total shares outstanding. Last month alone, over 52 tonnes of new gold metal was added to GLD.
"We look forward to the continuing success of our exchange traded gold products worldwide," concluded Burton.
GLD closed up 52 cents at $62.57 while gold for January delivery finished almost $4 higher on Monday at $634.80.
