StoneMor Sued Over Axar Capital’s $110 Million Take-Private Deal

Investors sued StoneMor Inc. in Delaware over fears that its $110 million take-private sale to Axar Capital Management LP affiliates, which closed Thursday, was the culmination of a years-long scheme to squeeze out minority shareholders at an unfair price.

The lawsuit, made public Thursday, seeks internal files from the cemetery business to investigate allegations that the $3.50-a-share deal was engineered by board members loyal to Axar, which already owned 75% of StoneMor after a five-year effort to acquire its stock at a discount.

The board reorganized the company from a partnership to a corporation, repeatedly waived or amended standstill provisions ...