SVPGlobal Sued by Hedge Funds Over Washington Prime Squeeze-Out

Former Washington Prime Group LLC investors filed suit in Delaware against its principal backers at Strategic Value Partners LLC, claiming they were ambushed and squeezed out of the real estate investment trust months after it emerged from bankruptcy.

The lawsuit, made public Thursday, also targets the REIT, certain top executives, and members of its board, including two appointed by the asset manager—better known as SVPGlobal—which allegedly owned 88% of Washington Prime before the transaction closed in June.

The 62-page suit, filed by a group of hedge investors, accuses the board of concealing SVP’s unsolicited buyout proposal for four months after ...