Apollo Sued Over Class Action Liability From $497 Million Deal

US Foods Inc. sued Apollo Global Management Inc. affiliates in Delaware, claiming the private equity giant is dodging its duty to cover the cost of litigation challenging its $497 million take-private acquisition of Smart & Final Holdings Inc., which it partly flipped to US Foods.

The lawsuit, made public Wednesday, accuses Apollo of reneging on its pledge to indemnify any Smart & Final executives or financial advisers facing shareholder claims for their role in the buyout. Apollo allegedly made that promise to US Foods in connection with their deal the following year for Smart & Final’s wholesale segment.

The company’s ...