5th Circ. Nixes Continental's Sham Divorce Suit

Law360, New York (July 18, 2011, 8:44 PM EDT) -- The Fifth Circuit on Monday upheld the dismissal of Continental Airlines Inc.'s bid to recoup retirement money that wives of several pilots received following allegedly sham divorces, ruling a company cannot deem a domestic order invalid if the corporation discovers the divorce to be phony.

The appeals court affirmed a ruling from a district court that tossed Continental's suit accusing nine pilots who still worked for the airline of obtaining phony divorces and then assigning their pensions to their ex-wives through domestic relations orders to game...
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