CORRECTED: OSG Execs Dodge Claims They Hid $35M Tax Debt
By Matthew Villmer
Law360, New York (September 11, 2013, 9:17 PM ET) -- A New York federal judge on Tuesday tossed Securities Exchange Act fraud claims against two executives of Overseas Shipholding Group Inc. who were accused of concealing the tanker company's $35 million tax debt that sent shares plummeting and plunged the company into bankruptcy.
The court found that OSG President Morten Arntzen and Vice President Myles Itkin did not run afoul of Section 10(b) and 20(a) of the Securities Exchange Act, saying investors failed to allege the two men had any knowledge of OSG's tax liability. The shareholder lawsuit,...