Dynegy Coal Deal Flak Buried Stock, Investors Claim

Law360, New York (March 30, 2012, 12:06 PM EDT) -- Dynegy Inc. investors lashed out again Wednesday at the power company’s $1.7 billion prebankruptcy restructuring, alleging in a putative class action in New York that controversy surrounding a coal asset transfer caused “devastating” stock losses.

Shareholder Charles Silsby’s complaint in federal court also targets billionaire investor and major Dynegy equity holder Carl Icahn. Dynegy purchased coal-fired and gas-powered facilities from Dynegy Holdings LLC in September, shortly before placing the holding company into bankruptcy as part of a pact with investors to sort out more than $4...
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