FXRE Subsidiary's Ch. 11 Plan Sparks Derivative Suit

Law360, New York (April 30, 2010, 5:20 PM EDT) -- Shareholders of FX Real Estate and Entertainment Inc. have launched a $150 million derivative suit against company insiders following the Chapter 11 filing of one of FXRE's Las Vegas subsidiaries, saying the proposed restructuring plan will wipe out shareholders' property interests while providing a windfall for company bigwigs.

Directors and officers breached their fiduciary duties to shareholders following the company's $475 million default on first and second mortgage loans secured by about 18 acres of property it owns in Las Vegas, shareholder The Huff Alternative Fund...
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