Wayfair Let Insiders Buy at Price Depressed by Virus, Suit Says

Wayfair Inc. was sued for records in Delaware by an investor claiming it diluted the ownership of public shareholders by letting private equity insiders buy $535 million worth of stock just before its market value—temporarily depressed by coronavirus fears—nearly tripled.

“Wayfair negotiated the purchase agreement when its stock price was still recovering from a sudden, severe drop caused by market uncertainty regarding the potential impact of the Covid-19 pandemic,” the Chancery Court complaint says. “The sudden and dramatic decline in Wayfair’s stock price was immediately followed by an equally sudden and dramatic recovery.”

The lawsuit, filed Tuesday, targets Wayfair’s sale ...