Cantor, Lutnick Beat Lawsuit Over BCG Partners Restructuring (1)

Cantor Fitzgerald LP and its billionaire ex-CEO, US Commerce Secretary Howard Lutnick, prevailed in court Thursday against a challenge to the restructuring of BGC Partners Inc., an affiliated brokerage.

A Delaware judge rejected claims that the deal to simplify BGC’s capital structure—by transforming it from a publicly traded partnership into an ordinary corporation—reflected a conflict-riddled effort to grow Cantor’s controlling stake. The BGC investor leading the lawsuit failed to seek an internal board investigation before going to court or show it would have been futile to try, the judge said.

Lutnick stepped down from his role as longtime ...