Bankrupt Co. Directors May Be Shareholder Targets

Law360, New York (May 12, 2009, 12:00 AM EDT) -- At the end of April, a group of shareholders filed a securities class action complaint against phone book publisher Idearc Inc. in the Northern District of Texas.

The claims made in the complaint were standard for such an action, but the circumstances of the company were anything but. A month beforehand, Idearc – saddled with $9 billion in debt and plummeting advertising revenues – had filed for Chapter 11 bankruptcy protection.

According to observers, the lawsuit was an end-run around the standard bankruptcy stay as well...
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