A New York federal judge has shot down an effort by creditors of the former Tribune Co to claw back $8 billion from shareholders who sold stock in the publisher's 2007 buyout, bringing a long-running legal battle sparked by its bankruptcy closer to an end.
The ruling stems from the tangled litigation following real estate mogul Sam Zell's leveraged buyout of the Chicago Tribune and Los Angeles Times publisher, which creditors blame for its 2008 bankruptcy.
In an attempt to recover money raised from the buyout, Tribune creditors have spent years pursuing unusual claims in court, such as trying to hold passive shareholders accountable for the failed deal.
In a ruling published on Monday, Judge Richard Sullivan dismissed such claims and absolved individual shareholders from complying with creditors' demands that they hand over the money from the sale of their stock in the buyout.
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