Idearc Shareholders Hit Execs With Fraud Action

Law360, New York (April 30, 2009, 12:00 AM EDT) -- Shareholders of Idearc Inc. have filed a putative class action against former and current executives of the bankrupt phone book publishing company, alleging the defendants released overly positive public statements about the company's outlook even as bad debts continued to pile up.

In a securities fraud suit filed in the U.S. District Court for the Northern District of Texas, a group of individuals who bought Idearc stock between August 2007 and March 2009 claims that five past and present Idearc executives began touting reduced debt and...
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