Axar Ducks Investor Challenge to $416 Million Funeral Firm Deal

Axar Capital Management LP escaped litigation challenging its $416 million take-private buyout of funeral and cemetery business StoneMor Inc., with Delaware Chancery Court Vice Chancellor J. Travis Laster granting the defendants’ motion to dismiss Tuesday.

Investors had alleged the hedge fund exploited its control of StoneMor before taking it private at a lowball price.

“It is not reasonably conceivable that the defendants did not properly implement” requirements for a controlling stockholder to engage in negotiations with minority shareholders regarding the terms of a transaction, Laster wrote in the order. “The business judgment rule therefore applies, mandating dismissal.”

Axar already ...