Squarespace’s $7.2 Billion Sale Hit With Hedge Fund Challenge

Squarespace Inc. CEO Anthony Casalena teamed up with three investment firms to drive down the price of the company’s $7.2 billion sale to their consortium, according to an unsealed lawsuit.

A hedge fund is suing the tech founder, Accel, and General Atlantic LP, saying their position on both sides of the deal—cashing out part of their dominant stake, forcing out minority shareholders, and bringing on Permira Advisers LLC as a major co-investor—gave them “a powerful economic incentive to minimize the transaction price.”

Although Casalena negotiated the buyout personally, he later sought “to insulate from judicial review the process he had ...