News
Rigrodsky & Long, P.A. Files Class Action Lawsuit On Behalf of Current and Former Employees of Idearc, Inc. Who Invested in The Idearc Savings Plan
Wilmington, Delaware - December 10, 2009
Rigrodsky & Long, P.A. announces it has filed a class action lawsuit on behalf of former and current employees of Idearc, Inc. (the “Company” or “Idearc”) (OTC: IDARQ.PK) who invested in the Idearc Savings Plan for Management Employees, the Idearc Savings and Security Plan for New York and New England Associates, and the Idearc Savings and Security Plan for Mid-Atlantic Associates (all plans subsequently merged into one plan and was renamed, The Idearc Savings Plan (the “Plan”)).
The lawsuit, pending in the United States District Court for the Northern District of Texas, alleges that during the period November 21, 2006 and March 31, 2009 (the “Class Period”), the Plan's administrators breached their fiduciary duties to the Plan and Participants in violation of the Employee Retirement Income Security Act of 1974 (“ERISA”), by failing to prudently and loyally manage the Plan's investment in Company Stock by, among other things: (i) continuing to offer Company Stock as a retirement saving option; (ii) continuing to acquire and hold shares of Company Stock in the Plan when it was imprudent to do so; (iii) failing to provide complete and accurate information to Participants regarding the Company's financial condition and the prudence of investing in Company Stock; and (iv) maintaining the Plan's pre-existing investment in Company Stock when it was no longer a prudent investment for the Plan. The lawsuit further alleges that the investment in Idearc common stock was imprudent, inter alia, because: (i) management had materially overstated net receivables, operating revenue and net income by failing to adjust the provision for uncollectible accounts receivable based upon its knowledge of the deterioration of the quality of the Company's customers and the fictitious billing to its former customers, and (ii) due to the rapidly increasing build-up of uncollectible receivables, a liquidity crisis (resulting in an inability to meet debt payments as they came due) was imminent. On March 31, 2009, the Company filed for protection under the U.S. bankruptcy laws.
