Suit Over Tribune LBO May Disrupt Markets, Shareholders Say

Law360, New York (November 7, 2012, 4:57 PM EST) -- An executive group of Tribune Co. shareholders asked a New York federal judge on Tuesday to toss a consolidated creditor clawback suit seeking redress over the $8.2 billion deal that tipped the media giant into bankruptcy, saying the suit may set a dangerous precedent for the stability of the securities market.

In a joint motion to dismiss, an executive committee of shareholder defendants and financial institutions who received proceeds from the buyout said that federal laws safe harbor provisions preempted Tribune's state-law claims seeking to avoid...
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