Wayfair Insiders Traded on Virus Fears, Pension Fund Suit Says

A pension fund sued Wayfair Inc.'s board and a group of private equity affiliates in Delaware Chancery Court, claiming its shares were diluted when insiders purchased $535 million worth of stock just before its market value skyrocketed after being temporarily depressed by coronavirus fears.

“Recognizing that the company’s stock price was severely but only temporarily depressed, Wayfair insiders treated” its “sudden collapse” as “an opportunity for favored investors to increase their ownership stakes at bargain prices,” the complaint says.

In addition to Wayfair’s board, the derivative lawsuit made public Tuesday targets affiliates of Great Hill Partners LP and Charlesbank Capital ...