Dell, VMware Sued Over $2.7 Billion Take-Private Pivotal Buyout

Dell Technologies Inc., its chairman-CEO Michael Dell, and its partial subsidiary VMware Inc. were hit with a Delaware lawsuit challenging VMware’s $2.7 billion take-private buyout of cloud computing company Pivotal Software Inc.

The 82-page Chancery Court complaint, made public Wednesday, accuses Dell and his namesake company of leveraging their greater than 90% voting control over VMware and Pivotal to transfer value from Pivotal, in which they held only a 62% economic stake, to VMware, of which they owned 81%.

Dell acquired its share of both companies when it bought their former mutual parent, EMC Corp., in 2016. The Pivotal ...