Gabelli Claims Honeywell Duped Investors With Hodgepodge Spinoff

Funds run by billionaire investor Mario Gabelli are suing Honeywell International Inc., alleging the conglomerate misrepresented the viability of a business it spun off under pressure from shareholder activist Daniel Loeb.

The suit, filed this week in federal court in Minnesota, is one of several brought in recent months over Honeywell’s 2018 spinoffs of Resideo Technologies Inc. and Garrett Motion Inc. The complaints include one that Garrett, Honeywell’s former transportation products business, filed against its ex-parent in December.

Resideo has plunged since its October 2018 stock market debut, a drop Gabelli funds attribute to allegedly false statements about ...