Icahn Wins Dismissal Of Blockbuster Creditor's Suit

Law360, New York (March 17, 2011, 1:42 PM EDT) -- The New York judge overseeing the bankruptcy of Blockbuster Inc. threw out a bondholder's lawsuit against former Blockbuster board member Carl Icahn on Thursday, calling the allegations of misdeeds by the billionaire investor “sparse.”

Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York dismissed with prejudice Lyme Regis Partners LLC's equitable subordination case against Icahn, also a Blockbuster bondholder.

“Here, I find the pleading is porous, essentially skin and bones,” Judge Lifland said, adding that giving Lyme Regis leave...
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