TXU Shareholder Suit Tossed

Law360, New York (June 4, 2007, 12:00 AM EDT) -- A Texas judge has thrown out a shareholder class action filed against the directors of energy company TXU Corp. in the wake of its $32 billion buyout by two private equity firms, ruling that the shareholders do not have the right to pursue claims against the company's directors.

Judge Carlos Cortez threw out the case on May 25, ruling that Texas law dictates that claims against the directors of a company can only be made in derivative suits.

The decision supports the argument made by the...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.