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Airline Suit Dismissed: A federal judge threw...

From Times Staff and Wire Reports

Airline Suit Dismissed: A federal judge threw out a lawsuit that alleged that Frank Lorenzo illegally sold his position as chairman of Continental Airlines when SAS paid four times the going price for stock in the airline. U.S. District Judge H. Lee Sarokin ruled that he did not have jurisdiction in the case. A Continental stockholder from Florida had asked the judge to declare the deal void. Named in the suit were Lorenzo, Continental Airlines Holdings Inc., Scandinavian Airline System, Jet Capital Corp., and members of the Continental board. Gillman had argued that corporation law bars corporate directors from selling their offices. SAS paid $14 per share for 2.25 million shares of Continental stock Aug. 9. That increased SAS’ share of Continental to 16.8%.


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