Ex-Puda Coal Directors Can't Dodge Suit Over Asset Sale

Law360, Wilmington (February 06, 2013, 10:02 PM ET) -- A Delaware Chancery Court judge on Wednesday scuttled a move by former Puda Coal Inc. directors to dismiss a derivative suit that alleged they failed to act when the company's chairman secretly sold its sole asset, saying their motion's twisted logic would produce an equally twisted result.

At a hearing on the motion, Chancellor Leo E. Strine Jr. blasted the argument that he should dismiss the suit because shareholders hadn't asked the board to take action before filing it, noting Puda's independent directors subsequently demonstrated that...
To view the full article, register now.