Idearc Shareholders File Shareholder Class Action Lawsuit Against Verizon and J.P. Morgan Over Idearc Spinoff
A class action lawsuit alleging securities fraud, common law fraud and insider trading, among other things, was filed against Verizon Communications and J.P Morgan Chase Bank in the U.S. District Court for the Eastern District of Pennsylvania over the spinoff of Idearc, Verizon‘s former telephone book division, which has since filed for bankruptcy, according to a Courthouse News Service class action news report.
If You Have Thoughts On TheVerizon & J.P. Morgan Idearc Class Action Lawsuit, Share Your Class Action Comments Below.
I have been ranting about this on my blog titled “Dallas Google SEO Guru” since Oct. I have tried to create transparency regarding this fraud for months. Finally vindication is near. Mike Stewart
Verizon clearly had a plan to spin off a business that had a terminal revenue stream, they loaded it with terminal debt leverage that Idearc could never grow out of, and a CEO, Kathy Harless, who Ivan Seidenberg wanted to jetison from Verizon along many other pieces of undesireable baggage. The problem for VZ and reason they should be held accountable is because they were effectively insiders with far more knowledge about the likelihood or certainty for failure of the Idearc entity than the general investing public armed only with the disclosures made through the SEC filings. Furthermore, other than the recent sale of assets to Frontier (who are insiders to the business units they bought) all of VZ’s spinoffs that could not be sold to institutional investors (private equity firms) or other Telecom companies were underwritten by IBs (like JP Morgan) who successfully sold shares to the unsuspecting and relatively uninformed general public. Both VZ and JPM should be held accountable and unless the courts penalize this type of activity, they will be condoning the use of insider information by companies using IB’s as well compensated accomplices to defraud the public.
I would like to know if there are any Class Action actions being considered or currently pending against Idearc on behalf of the original Idearc stock holders. Information on how to join any such actions would be appreciated.