BuzzFeed Sues to Block Arbitration Claims Over Initial Offering

BuzzFeed Inc. wants to block arbitration of claims that the company botched its initial-public offering and improperly denied employees the opportunity to sell their shares before the stock took a nosedive.

New York-based BuzzFeed, which went public in December, filed a lawsuit in Delaware Chancery Court late Thursday seeking to bar workers from proceeding with claims before the American Arbitration Association. The suit was filed under seal, but required public disclosures clearly identify arbitration as the issue in the suit.

Matthew Mittenthal, a BuzzFeed spokesman, declined to comment on the suit Friday.

BuzzFeed, founded in 2006, had a ...