Toys “R” Us Creditors Sue Directors, Private-Equity Owners (1)

Toys “R” Us Inc. creditors filed a lawsuit Thursday, accusing the defunct retailer’s directors of fraud and breach of fiduciary trust in events surrounding to its bankruptcy.

• Suit says former CEO David Brandon and other executives misrepresented bankrupt retailer’s ability to repay creditors after it took on a debtor-in-possession loan
• Directors, including representatives of owners Bain Capital, KKR & Co. and Vornado Realty Trust, didn’t disclose that company had to meet certain milestones to retain financing and wasn’t likely to achieve them, complaint says
• Executives maintained to vendors that company would reorganize and continued to place orders until right before ...