Carlyle Loses Bid to Dodge $78 Million Authentix Deal Challenge

Carlyle Group Inc. affiliates must face investor litigation over their $77.5 million sale of Authentix Inc. to Blue Water Energy LLP, a Delaware judge ruled Friday, citing claims that the deal squeezed out common stockholders and that the private equity giant was under pressure to exit its position.

Vice Chancellor Sam Glasscock III let the case move forward, saying it’s plausible the investment timeline of the Carlyle funds holding shares in the anti-counterfeiting company—which received the vast majority of the sale price, thanks to their preferred status—gave them an incentive to prioritize liquidity over total deal value.

Glasscock, writing for ...