Dr Pepper Hit With Investor Suit Over Keurig Deal Structure

Dr Pepper Snapple Group Inc. and its directors are facing a would-be class action accusing the beverage maker of “manipulating” its pending $18.7 billion sale to Keurig Green Mountain Inc. so stockholders can’t challenge the deal price.

Two pension funds brought the lawsuit March 28 in Delaware Chancery Court, claiming Dr Pepper’s board pursued a deal structure that prevents shareholders from exercising their rights to appraisal. Under Delaware law, a target company’s stockholders that sit out a merger can petition the court to assess the “fair value” of their shares.

The funds also accuse the directors of breaching their fiduciary ...