A Federal District Court issued a Sept. 27 order dismissing Darlene Investments LLC’s fraud action against DirecTV, and holding Darlene liable for breach of contract, DirecTV announced.

The dispute, argued in the Southern District of New York, arose over a series of transactions between DirecTV and Darlene in connection with DirecTV Latin America’s emergence from bankruptcy in February 2004. In its suit, Darlene, owned by The Cisneros Group of Companies and Bessemer Holdings, sought more than $1 billion in damages against DirecTV.

Based on the judgment, DirecTV said it will seek recovery of all legal fees and expenses related to the lawsuit. An arbitration proceeding is scheduled for January.