A class-action lawsuit brought by stockholders against the former R.H. Donnelley Yellow Pages company and some of its executives was settled earlier this month for $25 Million.
The stockholders in the suit (“Local 731 I.B. of T. Excavators and Pavers Pension Trust Fund et al. v. Swanson et al“) had said that executives had made false claims during the period, stating that print Yellow Pages were not becoming obsolete, among other things, and that they had made false assurances about the financial condition of the business.
RHD had filed for Chapter 11 reorganization in 2009, and later emerged from bankruptcy under the new name, Dex One Corporation, in 2010.
Aside from the claims around the company’s finances, the issue of whether print Yellow Pages are becoming obsolete or not has been a controversial one in the past. (more…)