LG Unit Accused of Scheme to ‘Pillage’ Ad Tech Business Alphonso

Alphonso Inc.'s founders and other minority investors sued an LG Electronics Inc. affiliate, claiming it’s trying to force them out and “pillage” the ad tech business.

The shareholder derivative lawsuit targets Zenith Electronics LLC—the LG unit that bought a majority stake in Alphonso two years ago—along with its current and former appointees to the seven-member board and the CEO they installed late last year. The price of the December 2020 acquisition is blacked out of the complaint, but an $80 million figure was reported at the time.

The suit in Delaware’s Chancery Court accuses LG and its board affiliates ...