Dynegy Inc.’s 2011 restructuring provoked the ire of a bankruptcy examiner, but it hasn’t proven fertile ground for a securities class action spearheaded by Levi & Korsinsky.
In a lengthy ruling on Wednesday, U.S. District Judge John Koeltl in Manhattan dismissed claims that Dynegy officials misled shareholders by not disclosing earlier that the power company was insolvent and by not stating that the purpose of various transactions was to shield assets from creditors. Koeltl ruled that Dynegy’s disclosures about the transactions were “robust,” and that there’s no evidence of an intent to mislead shareholders. (Hat tip to Brune & Richard’s S.D.N.Y. Blog, which first reported the ruling on Thursday.)
