GoDaddy Board to Face Pension Fund Lawsuit for $850 Million Deal

GoDaddy Inc.'s board of directors lost its bid to end litigation in Delaware challenging the company’s $850 million buyout of tax benefits held by its founder and other early investors, including major private equity firms.

Vice Chancellor J. Travis Laster let the case move forward Thursday, saying it’s plausible the board acted in bad faith in overpaying by 400% to end “tax receivable agreements” with KKR & Co., Silver Lake, Technology Crossover Ventures, and founder Robert Parsons. The buyout’s beneficiaries aren’t named as defendants.

Laster, writing for Delaware’s Chancery Court, stressed the “stark contrast” between the $175 million valuation ...