CD&R Agrees to $70 Million Settlement in $4 Billion Deal Case

Clayton, Dubilier & Rice LLC affiliates have agreed to pay $70 million to end shareholder litigation targeting their $4 billion deal for Covetrus Inc.

The settlement, disclosed Jan. 30, would resolve claims the private equity firm colluded with contacts inside the animal health company to drive down the sale price. The lawsuit, filed in 2023 in Delaware’s Chancery Court, said Covetrus’ CEO at the time was driven by personal perks to give CD&R an inside track, which it allegedly exploited to manipulate the buyout negotiations. Covetrus previously spun off from Henry Schein Inc. in 2019.

Take-private acquisitions occupy an outsized ...