Shareholder Slaps Icahn With Suit Over Handling Of XO

Law360, New York (June 3, 2010, 3:52 PM EDT) -- A shareholder in XO Holdings Inc. filed a class action Wednesday against billionaire investor Carl Icahn for abusing his majority stake in the company, appointing “patsies” to the board and diluting the holdings of minority shareholders through a preferred stock rights offering.

The Ichan-appointed board of XO failed to consider numerous offers to purchase the company's assets, instead opting for a rights offering that benefited only Icahn, according to a complaint filed by Youlu Zheng in the Supreme Court of the State of New York for...
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