Dynegy Investor Targets Board Over $1.7B Asset Transfer

Law360, Wilmington (May 17, 2012, 8:40 PM EDT) -- A shareholder hit Dynegy Inc.’s board with a derivative suit Thursday over the allegedly fraudulent $1.7 billion asset transfer that preceded the bankruptcy of the power company’s subsidiaries.

The suit, filed by Cleo Zahariades in Delaware Chancery Court, claims the Dynegy board breached its duty to shareholders as it presided over the September restructuring that transferred power plant assets from a subsidiary, which a bankruptcy examiner recently concluded to be a fraud on creditors.

“Dynegy has been damaged by the board’s failure to adequately address the...
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