GGP, Brookfield Deal Challenged by Mall Owner’s Investors

GGP Inc.'s multi-billion dollar sale to Brookfield Property Partners LP faces a legal hurdle after a shareholder of the shopping center operator sued to block the cash-and-stock deal.

The putative class action, filed April 10 in Delaware Chancery Court, accuses GGP’s directors of breaching their fiduciary duties by failing to “achieve the highest value reasonably attainable” for stockholders.

Delaware state courts have set a high bar for proving that minority stockholders have control over a company and its actions, which this complaint alleges.

Brookfield, which holds a minority stake in GGP, agreed in March to buy the remaining shares of ...