Necco Board Wants Trustee's D&O Suit Tossed

Law360 (November 5, 2018, 8:11 PM EST) -- The former directors and officers of candy maker New England Confectionery Co. Inc. Monday asked a federal court to dismiss claims they drove the company into bankruptcy, arguing their choices were reasonable and they are protected by the company charter.

The directors, along with the company's equity owners, asked the court to dismiss the claims by Chapter 11 trustee Harold Murphy that their decisions in the years leading up to Necco's bankruptcy constituted a breach of their fiduciary duties, saying the company's articles of incorporation expressly say directors cannot be held liable for breach of care.

"Beyond that, plaintiff cannot plead...

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