Nestlé’s $1.5 Billion Deal for Freshly Draws Nine-Figure Lawsuit

Former Freshly Inc. investors sued affiliates of Nestlé SA, claiming the Swiss multinational stiffed them on hundreds of millions in post-deal payments after buying the meal delivery business for $1.5 billion.

The lawsuit accuses Nestlé of pressuring Freshly’s founder to step down after the transaction—rather than admit he was being forced out—to avoid triggering nine-figure payments to the former shareholders. The partly redacted court filing blacks out key details, including most dollar figures and the precise nature of the “earnout” trigger, but it says the post-deal payments were supposed to total $550 million.

The allegations sound a recurring theme ...