Nutraceutical International Inc. will pay $17.5 million, including $3.75 million in legal fees, to resolve an investor’s court challenge in Delaware to the supplement maker’s $446 million buyout by a private equity firm affiliated with its management.
The lawsuit, filed about a year ago in Delaware Chancery Court, targets members of the company’s board at the time of the $41.80-a-share deal in 2017 and its acquirers at HGGC LLC. The investment firm is led by Bob Gay, a former Nutraceutical executive and brother of its then-CEO Frank Gay.
The suit accuses the directors of giving HGGC “a friendly purchase price” ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.