Bally’s $4.6 Billion Standard General Sale Draws Challenge (1)

Standard General LP’s $4.6 billion acquisition of Bally’s Corp. undervalued the casino conglomerate, shortchanged its public investors, and handed all of its upside to the hedge fund’s affiliates, according to a lawsuit unsealed Wednesday.

A pension fund is suing Standard General and members of the Bally’s board, including chairman Soohyung Kim, the New York investment firm’s managing partner. Kim and Standard General teamed up with two other large stockholders, including Sinclair Broadcast Group Inc., to ram through a buyout that forced public shareholders to choose between an unfair cash price or stock in a business transformed by the ...