Tribune bankruptcy judge defers action on complaint over employee lawsuit
By APWednesday, October 28, 2009
Bankruptcy judge defers action in Tribune lawsuit
WILMINGTON, Del. — A Delaware bankruptcy judge has deferred action on the Tribune Co.’s request to halt a lawsuit alleging that Chairman Sam Zell misused an employee stock ownership plan in taking the company private in a 2007 leveraged buyout.
Attorneys said Wednesday they are awaiting an Illinois judge’s ruling on Tribune’s motion to dismiss the federal lawsuit, which was filed by a group of current and former Los Angeles Times staffers.
The motion to dismiss was the subject of a hearing last week. Meanwhile, Tribune sought an injunction in bankruptcy court to prevent the lawsuit from proceeding against other defendants who are not part of the bankruptcy case.
The bankruptcy judge agreed to await a ruling by the Illinois judge on the motion to dismiss.
