Nutraceutical International Inc.'s former board and HGGC LLC were hit with a Delaware lawsuit Wednesday claiming the supplements maker’s $446 million take-private buyout was underpriced because of close links, including family ties, between the company and its private equity acquirers.
The Chancery Court suit targets the 2017 transaction that made Nutraceutical an HGGC subsidiary for $41.80 a share.
It accuses the company’s board at the time of giving “a friendly purchase price” that didn’t reflect its “true value” to the investment firm, which was led by a former top Nutraceutical executive and the brother of its then-CEO Frank Gay, who ...
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