10th Circ. Won't Let Mahalo Directors Skirt Debt-Shifting Suit

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...
To view the full article, register now.