A group of investment funds sued Juul Labs Inc., seeking to bar it from converting debt into equity on terms that allegedly favor insiders siphoning value out of the vaping company, including hotel billionaire Nick Pritzker.
The lawsuit made public Tuesday requests an injunction that would block Juul’s alleged plan to convert $1.9 billion worth of notes—half of them held by funds affiliated with D1 Capital Partners LP—into “equity worth a fraction of its value.” The suit was originally filed under seal Oct. 19.
The legal complaint comes as Juul—which spent 2022 on the financial brink amid a barrage ...
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