Former EZ Lube Owners Can't Shake Suit Over LBO

Law360, New York (April 6, 2011, 2:17 PM EDT) -- A California federal judge on Monday refused to toss allegations that EZ Lube LLC’s former owners looted the company during a ruinous 2005 leveraged buyout and are required to hand over roughly $30 million they pocketed to unsecured creditors.

Judge David O. Carter of the U.S. District Court for the Central District of California rejected a move by EZ Lube’s former heads Richard Teasta and Michael Dobson for early dismissal of fraud and breach of fiduciary duty claims brought by Invotex Inc., the trustee for the...
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