Warburg, GTCR, Sotera Leaders Hit With Insider Trading Case (1)

Sotera Health Co.'s senior leaders and private equity backers sold $675 million in stock at prices inflated by their scheme to conceal the toxicity of a chemical made by a subsidiary, according to a lawsuit made public Wednesday.

The shareholder suit, filed in Delaware, targets Sotera’s board, its top executives, and affiliates of Warburg Pincus LLC and GTCR LLC, which it says together own about 52% of the business as of April. Company leaders fought for decades to keep a lid on the carcinogenic and neurotoxic nature of ethylene oxide—a manufacturing agent produced by Sterigenics US LLC that’s also used ...