Verizon Faces Suit Over Idearc Spinoff

Law360, New York (September 15, 2010, 7:47 PM EDT) -- The litigation trustee for Idearc Inc. has brought a suit alleging Verizon Communications Inc.’s November 2006 spinoff of the directory business left it saddled with billions of dollars in debt and drove it into bankruptcy.

The U.S. Bank National Association, Idearc’s litigation trustee, lodged the action in the U.S. District Court for the Northern District of Texas on Wednesday against Verizon and affiliates Verizon Financial Services LLC and GTE Corp. for several alleged fraudulent transfers.

The complaint alleges that in an effort to get rid of...
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