Verizon Finishes Off Creditor Suit Over $9B Idearc Spinoff
By Jess Davis
Law360, Dallas (June 18, 2013, 9:11 PM ET) -- Verizon Communications Inc. on Tuesday defeated a $9 billion fraudulent transfer suit that targeted its spinoff of the former Idearc Inc., when a Texas federal judge ruled that the bankrupt phone directory company’s creditors couldn't prove that Verizon had intended for the spinoff to fail.
U.S. District Judge Joe A. Fish said Idearc creditors, represented by litigation trustee U.S. Bank NA, didn’t show enough direct or circumstantial evidence that Verizon had fraudulent intent when it spun off its phone book unit, and he rejected a constructive...