Nuveen Wrongfully Interfered in Rival’s Business, Judge Says

U.S. bond-market powerhouse Nuveen LLC wrongfully interfered with the business of Preston Hollow Capital LLC by organizing an intimidation campaign to coerce broker-dealers from doing business with its smaller rival, a judge concluded.

Delaware Chancery Court Judge Sam Glasscock III ruled Thursday that Preston Hollow had made legitimate allegations that Nuveen misused its market power as one of the biggest buyers of state and local government bonds to freeze out the smaller firm.

“I find that Nuveen exerted improper economic pressure on Preston Hollow,” Glasscock said in his ruling.

Still, Glasscock said he declined to issue an injunction barring Nuveen ...