XO Holdings, Inc.
Since May 2010, Abbey Spanier, LLP has represented the minority stockholders of XO Holdings, Inc. ("XO") in a class action against defendants Carl C. Icahn (the Chairman of XO's Board), Carl J. Grivner, Adam Dell, Fredrik Gradin, Vincent Intrieri, Keith Meister, Robert Knauss, David S. Schecter, Peter Shea, Harold First, Daniel A. Ninivaggi, ACF Industries Holding Corp., Arnos Corporation, High River Limited Partnership, Starfire Holding Corp., Arnos Sub Corp., XO Merger Corp., Barberry Corp. and XO Holdings, Inc. (collectively the "Defendants").
The certified class action, challenges two transactions which were the product of a predatory scheme spanning several years by defendant Icahn, to first dilute and ultimately freeze out XO's minority shareholders and to wrongfully take for his own use and benefit all of XO's corporate assets including the Company's net operating losses ("NOLs") which could be used to offset his tax liability arising from his ownership interest in other companies. The two challenged transactions ultimately permitted Icahn to acquire 100% of XO's shares and use of the Company's NOLs. Class Plaintiffs have alleged that XO minority shareholders have suffered enormous losses and their interests were massively diluted and ultimately eliminated by means of Defendants' unfair dealing in violation of their fiduciary duties
On January 29, 2013, Judge Charles E. Ramos issued an Order substantially denying the Defendants' motion to dismiss and largely upheld the majority of the claims asserted in the class plaintiffs' sixth amended complaint. In that Order, the Court also denied Defendants' motion for summary judgment in a companion case filed by an individual plaintiff R2 Investments, LDC ("R2"). As a result of the Court's holdings, the class action and the R2 action will now proceed to trial.