KKR Sued by Transphorm Holder Over $23 Million Stock Sale (1)

A Transphorm Inc. investor sued a KKR & Co. affiliate in Delaware, claiming the private equity giant arranged an artificially cheap $23 million stock sale to itself—aimed at keeping control of the company as it refinanced—while it had inside information that a wave of good news was coming.

The lawsuit, filed in Delaware Chancery Court, also targets members of Transphorm’s board, including several with ties to KKR. It accuses the board and KKR, the company’s controlling stockholder, of timing the transaction to ensure that KKR not only kept its majority stake but got a windfall in the bargain.

The private ...