Carlyle Group Board Sued Over $344 Million Payment to Founders

A pension fund sued Carlyle Group Inc.'s senior leaders in Delaware, challenging a $344 million payment to the private equity firm’s founders in connection with the end of tax agreements they reached when taking the asset manager public.

The shareholder derivative lawsuit, made public Wednesday, targets members of Carlyle’s board and management, including co-founders William E. Conway Jr., Daniel A. D’Aniello, and David M. Rubenstein, along with other top executives who allegedly form part of their majority control group.

The suit in Delaware’s Chancery Court accuses them of pushing through the nine-figure payment—which began as a buyout of tax benefits ...