Shareholders Sue Harrah's Over Bond Exchanges

Law360, New York (January 12, 2009, 12:00 AM EST) -- Shareholders have filed a proposed class action lawsuit against casino chain Harrah’s Entertainment Inc. for allowing a select pool of investors to cash in on senior notes and purchase high-priority notes as the company heads toward insolvency.

S. Blake Murchison and Willis Shaw filed the suit against Harrah’s on Friday in the U.S. District Court of Delaware, maintaining that the company illegally limited bond exchange offers to “qualified institutional buyers” and “certain non-U.S. investors located outside the United States," leaving other investors vulnerable to the possibility...
To view the full article, register now.