Radius Health Private Equity Sale Targeted in Court by Investor

Radius Health Inc.'s top executives were driven by golden parachutes to engineer an underpriced sale that headed off a growing shareholder revolt, according to an unsealed lawsuit.

A Radius ex-investor is challenging the transaction in court, saying the biotech company’s CEO stacked its board with loyalists and manipulated financial forecasts to make the deal more attractive, effectively inviting a private equity consortium to exploit obvious conflicts of interest. Gurnet Point Capital LLC and Patient Square Capital LP closed the acquisition—allegedly worth up to $890 million, including an upfront payment of nearly $500 million—in August 2022.

The allegations echo several recurring ...