Court Throws Out Lone Star Guilty Verdicts

Law360, New York (June 24, 2008, 12:00 AM EDT) -- A South Korean appeals court has overturned a lower court's verdict against American private equity group Lone Star Funds and the head of its South Korean unit four months after they were convicted of stock manipulation in the ill-fated 2003 acquisition of Korea Exchange Bank.

Judge Ko Yue-young of the Seoul High Court overturned the verdict against the Dallas-based company and Paul Yoo, who heads Lone Star's South Korean operations, on Tuesday, citing insufficient evidence, the Associated Press reported.

The move overturned fines of 25 billion...
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