Idearc's Bankruptcy Caused by Verizon?

Photo illustration for my blog article on Idearc's Bankruptcy - Is Verizon Responsible?.

Idearc was formerly a division of Verizon - Verizon Directories Corp, and it was spun off in late 2006. Idearc remains the publisher of Verizon's printed phone books such as the ones shown in this photograph.

A number of class-action lawsuits have cropped up in the wake of Idearc's filing for Chapter 11 bankruptcy protection. Those class actions have been based in part on the premise that Idearc executives didn't disclose changes to policies made when accounting and reporting projected advertising billing.

My blog post suggests that a greater responsibility for stockholder losses actually should be linked back to Verizon's spinoff of Idearc Media in the first place. Verizon spun off Idearc with an untenable and unrealistically high debt load.