Citi, New Enterprise Beat $5.1 Billion Tesaro-Glaxo Deal Lawsuit

Tesaro Inc.'s former board, private equity backers at New Enterprise Associates Inc., and financial advisers at Citigroup Inc. dodged a shareholder challenge in Delaware to the oncology company’s $5.1 billion sale to GlaxoSmithKline Plc.

Vice Chancellor Morgan T. Zurn tossed the case from Delaware’s Chancery Court, rejecting claims that Tesaro ex-directors rushed an underpriced deal, with Citi’s help, so New Enterprise could exit its longtime investment on terms justifying exorbitant fees it planned to charge on a new fund it was raising.

Although the lawsuit has much to say about New Enterprise and its connections to Tesaro’s leadership, none ...