Dell, VMWare Pay $43 Million to Exit Suit Over $2.7 Billion Deal

Dell Technologies Inc., billionaire CEO Michael Dell, and partial subsidiary VMWare Inc. will pay $42.5 million to end investor litigation challenging VMWare’s $2.7 billion take-private buyout of cloud computing company Pivotal Software Inc., according to court filings Friday in Delaware.

The class action settlement would resolve claims that Dell and his company engineered a deal leveraging their greater than 90% voting control over VMWare and Pivotal to unfairly transfer value from Pivotal, in which they held only a 62% economic stake, to VMWare, of which they owned 81%. The lawsuit also named Pivotal’s former CEO and chief financial officer ...