Apollo, Edgio Rewrite White Squire Deal to End Investor Lawsuit

Edgio Inc. is looking to end shareholder litigation over its “white squire” agreement with Apollo Global Management Inc. by rewriting the pact to let the private equity giant vote freely in board elections.

The digital media company filed the proposed settlement in Delaware’s Chancery Court about five months after a novel court decision let the case move forward against six members of its nine-seat board. The ruling by Vice Chancellor Morgan. T. Zurn said it’s conceivable the deal—tied to an Apollo affiliate’s acquisition of a 35% stake—was a pretext for staving off shareholder activism. Apollo isn’t named as a defendant. ...