Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Steel Connect Sued Over Buyout, $2 Billion Net Operating Losses

Sept. 30, 2022, 5:51 PM

Steel Connect Inc. investors sued it in Delaware over fears that its planned take-private buyout by Steel Partners Holdings LP affiliates may undervalue the company’s $2.1 billion in net operating losses, which can translate into valuable tax offsets.

The three separate lawsuits seek internal files from Steel Connect to investigate concerns that Steel Partners and its loyalists on the Steel Connect board engineered the $1.35-a-share transaction for their own benefit, at the expense of the supply chain company’s public investors.

The suits were filed in Delaware’s Chancery Court on Thursday, the eve of a planned vote on the deal at ...