Brookfield Gets Suit Over $2.8B Rouse Buyout Tossed by Judge

Brookfield Asset Management Inc. convinced a Delaware judge to throw out a lawsuit that accused it of taking Rouse Properties Inc. off the public market through a “fatally conflicted” process.

Brookfield’s 34 percent ownership in Rouse at the time of the deal can’t be treated as a controlling stake, meaning the Toronto-based firm didn’t have, or breach, any fiduciary duty to Rouse’s shareholders, Chancery Court Judge Joseph Slights wrote in a March 9 opinion.

The 2016 class action, brought by two former Rouse investors, alleged Brookfield had undue influence over the $2.8 billion transaction and took advantage of “inside knowledge” ...