NEW YORK -- May 7, 2008: New York state Justice Helen Freedman has dismissed three of four claims by Thomas H. Lee Partners and Bain Capital in their lawsuit against the six banks that agreed to fund the private equity firms' buyout of Clear Channel Communications, but has said the case will go to trial on the breach of contract claim, Reuters reports. Freedman dismissed claims of fraud and civil conspiracy.
The Clear Channel buyout, pending since November 2006 and approved by the Department of Justice and the FCC, has led to a flurry of lawsuits in Texas and New York as the six banks have failed to come through with funding for the $19.5 billion deal.
Lee and Bain Capital filed suit in both states, with Clear Channel a party to the Texas suit, which alleges tortious interference with the buyout on the banks' part. Two hedge funds have also sued the banks in Texas over the matter, also alleging tortious interference.
