10th Circ. Won't Let Mahalo Directors Skirt Debt-Shifting Suit
By Jeff Sistrunk
Law360, Los Angeles (July 17, 2013, 7:30 PM ET) -- The Tenth Circuit ruled Wednesday that Mahalo Energy Ltd.'s Canadian officers and directors must face claims that they schemed to line their pockets by saddling an Oklahoma-based subsidiary with debt, saying the officials had enough ties to the now-bankrupt subsidiary to justify Oklahoma jurisdiction.
In a published decision, the three-judge panel said an Oklahoma federal court had erred in granting a motion by Mahalo's Canadian officers and directors to dismiss the case for lack of jurisdiction, saying that, while none of the alleged breaches of duty originated...