Ex-ReoStar Execs Can't Shake Suit Over $11M Debt Sale

Law360, New York (August 6, 2012, 5:57 PM EDT) -- A Texas federal judge on Friday refused to dismiss ReoStar Energy Corp.'s suit alleging its former CEO and finance chief breached a contract by selling an $11.2 million debt at a steep discount to a creditor who then pushed the firm into bankruptcy.

U.S. District Judge John McBryde denied a May 29 motion by Mark Zouvas and Scott Allen to dismiss claims for breach of contract, breach of fiduciary duty and negligence. ReoStar claims the former executives misled shareholders and the board of directors about their...
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