Virtu Financial Sued for ‘Staggering’ Payouts to Viola, Insiders

A pension fund sued Virtu Financial Inc. in Delaware over claims that its billionaire founder, Vinnie Viola—a former Trump cabinet nominee who owns the NHL’s Florida Panthers—may be “abusing his control” over the business by “siphoning” hundreds of millions from public investors.

The lawsuit, made public Thursday, seeks internal files to investigate concerns that Viola is exploiting the company’s “up-C” structure by diverting cash from Virtu, a publicly traded shell corporation, to insiders with direct equity in its operating subsidiary reflecting their stakes before its 2015 initial public offering.

“The numbers are staggering,” but “after many months of delays, misdirection, ...