Adelphia shareholders' claims against banks tossed

August 21, 2007 A Manhattan bankruptcy judge has dismissed 12 of 13 claims by Adelphia Communications Corp. shareholders accusing the former cable TV operator's investment banks of fraud and other wrongdoing. Judge Robert Gerber threw out claims alleging breach of contract, unjust enrichment, and violations of federal racketeering laws because the committee representing shareholders failed to show or adequately allege wrongdoing, according to the Aug. 17 ruling. The judge let stand one claim accusing Citigroup Inc.'s Salomon Smith Barney unit of negligence in recommending that Adelphia sell shares in public offerings and private placements when it knew the company wasn't getting enough value for them.

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