Ex-Duane Reade Execs' Fraud Didn't Harm Owner: Judge

Law360, New York (August 1, 2011, 5:28 PM EDT) -- A New York federal judge ruled Friday that prosecutors failed to prove that the actions of two former Duane Reade Inc. executives awaiting sentencing for fraud had caused economic harm to the drugstore chain's owner, Oak Hill Capital Partners LP.

U.S. District Judge Deborah A. Batts' ruling turned aside the prosecution's argument that the actions of former Duane Reade CEO Anthony Cuti and ex-Chief Financial Officer William Tennant, who were convicted in June 2010 of a scheme to artificially inflate the drugstore chain's apparent income, damaged...
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