PE Firm Cornell Says Dividend Didn’t Bankrupt Instant Pot Maker

Cornell Capital LLC is disputing a lawsuit that accuses the private equity firm of helping drive its former portfolio company Instant Brands into bankruptcy.

A $345 million dividend and other transactions targeted in a civil lawsuit filed earlier this month were independently reviewed and permitted by lenders, firm founder Henry Cornell said in a Monday letter to employees that was reviewed by Bloomberg News. Other allegations that serve as the basis for the suit are also false and will be defeated in court, Cornell said.

The letter provides Cornell Capital’s first detailed response to a complaint filed in Texas bankruptcy ...