Constar Execs Released From Securities Fraud Suit

Law360, New York (March 11, 2010, 6:31 PM EST) -- Two top executives of bankrupt packaging manufacturer Constar International Inc. have won dismissal of a derivative action alleging they misled shareholders about the company's strength and prospects for a debt-for-equity restructuring.

Judge Harold Baer Jr. of the U.S. District Court for the Southern District of New York on Wednesday dismissed the Constar shareholders' claims against CEO Michael J. Hoffman and Chief Financial Officer Walter S. Sobon, saying they failed to sufficiently allege what parts of the executives' statements about Constar's health were false.

“[This suit] fits...
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