Financier Lynn Tilton lost a court fight for control of Stila Styles LLC, when a Delaware judge ruled that she exceeded her authority by refinancing the company in 2017 and appointing herself its manager without the consent of Zohar III Ltd., a bankrupt investment fund she founded.
Vice Chancellor Joseph R. Slights III ruled for the fund Tuesday, saying the “diva of distressed” breached the cosmetics company’s operating agreement when she unilaterally pushed through amendments that issued a new class of stock to a Tilton affiliate and gave it the sole right to pick Stila’s manager.
Slights, writing for Delaware’s ...
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