J2 Global Board Sued by Labor Union Over $200 Million OCV Deal

A labor union sued J2 Global Inc.'s board in Delaware, challenging the tech company’s $200 million investment in a fund affiliated with OCV Partners—a venture capital firm run by its chairman—and millions in management fees related to the deal.

“There is no legitimate business justification for J2 to invest in OCV” or “transfer of millions of company dollars to the fund,” the Chancery Court complaint says.

The lawsuit, which also targets various OCV affiliates, accuses J2’s board of steering the acquisition-minded company toward the deal solely because of OCV’s links to J2 chairman Richard Ressler and two other directors. Two ...