Ares, Citi, Jefferies Sued Over $497 Million Apollo Deal (1)

A former Smart and Final Stores Inc. investor filed suit in Delaware against affiliates of Ares Management Corp., Citigroup Inc., and Jefferies Financial Group Inc., claiming they arranged an underpriced $497 million sale to Apollo Global Management Inc. so Ares could meet its exit timeline and liquidate a multibillion-dollar fund.

The lawsuit, docketed Thursday, targets two Ares funds that together controlled the grocery chain, along with three of its top executives at the time of the transaction and affiliates of the two banks that acted as deal advisers. It doesn’t name Apollo—which allegedly went on to flip Smart ...