Zayo $14 Billion Buyout Case Yields $27 Million Legal Settlement

Zayo Group Holdings Inc. will pay $27.1 million to end litigation brought by a group of pension funds challenging aspects of its $14.3 billion take-private sale, at the time the second-largest leveraged buyout since the 2008 financial crisis.

Zayo, ex-CEO Dan Caruso, and the Teamsters funds leading the case disclosed the settlement Monday in Delaware’s Chancery Court, where Caruso was facing claims that he kept stockholders in the dark about pre-deal talks with one of the company’s acquirers, Digital Colony Partners LP.

An affiliate of Swedish private equity giant EQT Partners also participated in the transaction, which closed in 2020. ...