Judge Trims Suit Against Verizon Over Spinoff Transactions

Law360, New York (August 1, 2012, 4:02 PM EDT) -- A Texas federal judge on Tuesday partially granted a motion to dismiss a suit against Verizon Communications Inc. accusing it of defrauding creditors by spinning off Idearc Inc.  and driving the company into bankruptcy, preserving fraudulent transfer and promoter liability claims.

In a partial motion to dismiss lodged in December, Verizon attacked some of creditor U.S. Bank NA's fraudulent conveyance, promoter liability, unjust enrichment and alter ego claims, citing lack of standing, insufficient evidence and untimeliness. U.S. District Judge A. Joe Fish granted in part and...
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