Private Equity Fight Reveals Subpoena Over H.I.G.-Audax Deal

US prosecutors in Manhattan are looking into possible fraud surrounding the sale of a telecom software company by private equity firm Audax Groupto rival H.I.G. Capital for $915 million, according to a court filing.

Andrew Warner, former chief financial officer of Mobileum Inc., has received a subpoena for information about the company’s finances and the 2022 sale, which H.I.G. officials claim was rife with fraud, according to a filing in a California lawsuit. H.I.G. was duped into paying a “grossly inflated purchase price” that “unjustly enriched” Audax, according to another suit by the buyer, in Delaware.

H.I.G. accuses ...