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

March 12, 2020, 10:40 PM

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 ...