RSH Liquidating Trust v. Magnacca

MEMORANDUM OPINION GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS

Russell F. Nelms, United States Bankruptcy Judge

In this case, the plaintiff, a trust created for the benefit of RadioShack’s creditors, alleges that chief executive officer and director Joseph Magnacca engineered a transaction that delivered RadioShack into the hands of Standard General, its largest shareholder, in order to further Magnac-ca’s personal ambitions. It also alleges that RadioShack’s independent directors were fully aware of Magnacca’s conflicted loyalties and yet permitted him to pursue his…