MHR Fund Targeted Over Novo Nordisk’s $1.8 Billion Emisphere Buy

A group of former Emisphere Inc. shareholders sued the company’s ex-board and affiliates of MHR Fund Management LLC in Delaware Chancery Court, claiming they forced through its $1.8 billion sale to Novo Nordisk AS on terms that favored private equity insiders over public investors.

“Emisphere had no need to be acquired, certainly not for anything less than fair value,” but “MHR was incentivized to cause a quick sale” by the nature of its investments and the company’s “complex corporate structure,” the complaint says.

An MHR spokesperson called the allegations “meritless” Tuesday in a statement to Bloomberg Law.

“MHR believes the ...