Brookfield Beats $400 Million Stock Lawsuit by GrafTech Investor

Brookfield Asset Management Inc. dodged litigation in Delaware over a pair of related transactions through which it unloaded nearly $400 million in GrafTech International Ltd. stock shortly before the manufacturer announced disappointing earnings.

Chancellor Kathaleen St. Jude McCormick dismissed the case from Delaware’s Chancery Court, where a GrafTech shareholder challenged the terms of its $250 million buyback deal with Brookfield, which was pegged to the price of a separate $147 million block sale of stock from Brookfield to a major bank.

The derivative lawsuit, which also targeted members of GrafTech’s board, was doomed by the plaintiff’s failure to demand an ...