Yellow Corp. Investors Drop Allegations of Cargo, Covid Schemes

Securities Law

By Mike Leonard

July 19, 2021, 6:28 PM

  • Shareholders voluntarily dismiss case without apparent deal
  • Parallel securities suit settled in a federal court in N.Y.

Two Yellow Corp. investors have dropped claims that its board oversaw a fraudulent scheme to overcharge customers for freight cargo, then courted scandal by seeking a potentially unjustified £700 million coronavirus bailout from the government, according to court filings in Delaware. The shareholders moved to voluntarily dismiss the derivative case July 16 without offering a reason, but they stated expressly that they haven’t reached a cash settlement with the former YRC Worldwide Holding Corp., which changed its name Feb.

4, or the trucking company’s board. Vice Chancellor Sam Glasscock III formally dismissed the case without prejudice Monday from Delaware’s Chancery …

Mike Leonard

Legal Reporter

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