Steel Connect Inc. and its board must face a shareholder lawsuit accusing them of letting insiders linked to a partial parent company take majority control “on the cheap,” a Delaware Chancery Court judge ruled June 28.
The suit accuses the supply chain management company and its leadership of approving the conflicted sale of preferred stock to Steel Partners Holdings LP and its affiliates, which already owned a third of Steel Connect. The stock was allegedly used to finance the acquisition of nonparty ModusLink Global Solutions Inc.
The financing deal brought Steel Partners’ share of the company to nearly 50%. As ...
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