Cubic Corp. Targeted Over $2.4 Billion Sale to Elliott, Veritas

Two Cubic Corp. investors sued it in Delaware, seeking internal files to investigate whether the defense technology company’s board caved to activist pressure when it signed off on a “lowball” $2.4 billion take-private buyout by affiliates of Elliott Investment Management LP and Veritas Capital.

Elliott, run by billionaire Paul Singer, is following its “well-worn playbook” of “initiating an activist campaign,” publicly pushing for a sale, and then using proxy threats and “an underpriced offer” to “manipulate the company from the inside,” according to one of the complaints.

“If a competing bid is accepted, then Elliott liquidates its stake for a ...