Zell Won't Have To Disgorge Funds In ERISA Suit

Law360, New York (August 10, 2010, 5:55 PM EDT) -- A judge has ruled that Tribune Co. chairman Sam Zell and his company EGI-TRB LLC cannot be required to disgorge payments received from now-bankrupt Tribune during Zell's acquisition, rejecting a request by employees in a proposed class action claiming the deal caused the company’s employee stock ownership plan to lose value.

Judge Rebecca R. Pallmeyer of the U.S. District Court for the Northern District of Illinois on Monday granted Zell's motion for judgment on the pleadings with regard to the disgorgement, but also ruled that Zell...
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