Dynegy Judge Says Ch. 11 Releases Don't Bar Investor Claims

Law360, New York (February 19, 2013, 3:40 PM EST) -- A New York bankruptcy judge refused Friday to block a putative securities class action claiming Dynegy Inc. officers and directors are liable for a sharp drop in stock prices that occurred after an allegedly improper transfer of coal assets.

U.S. Bankruptcy Judge Cecilia G. Morris said Dynegy’s Chapter 11 plan confirmation order didn’t bar lead plaintiff Steven Lucas from filing an amended complaint. Dynegy contends that the plan’s release of claims against nondebtors like company directors and officers should shut the claims down.

Additionally, she declined...
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