Hilton Grand Vacations Board Sued Over $1.4 Billion Diamond Deal

A Hilton Grand Vacations Inc. investor filed suit in Delaware on Wednesday over its proposed $1.4 billion combination with Diamond Resorts International Inc., claiming HGV’s board breached its fiduciary duties by concealing conflicts of interest affecting financial adviser Bank of America.

The lawsuit, made public Wednesday in Delaware Chancery Court, accuses the board of keeping investors in the dark when urging them to approve a deal-related stock issuance based on a fairness opinion by BofA, which is allegedly helping to bankroll the hotel chain merger with debt financing.

Although the board disclosed a $35 million fee the bank will ...