Fidelity National, Bill Foley Targeted Over F&G Financing Deal

A pension fund sued Fidelity National Financial Inc. and billionaire chairman Bill Foley, saying they pushed partial subsidiary F&G Annuities & Life Inc. into an unnecessary and unfair financing transaction.

The title insurance giant exploited its 85% control over F&G, a 2022 spinoff, to stack the board with loyalists who rubber-stamped a $250 million investment in F&G by Fidelity, which got lucrative terms at the expensive of public shareholders, according to the lawsuit made public May 31.

The financing will allegedly hand Fidelity preferred stock that also pays out dividends before it ultimately converts into common shares. The arrangement ...