Norcast Sues PE Firm For Selling Unit To Rival For $25M Fee

Law360, New York (June 5, 2012, 9:04 PM EDT) -- International conglomerate Norcast SARL sued private equity firm Castle Harlan Inc. on Monday in New York for at least $25 million, alleging the firm served as a secret straw buyer in a $190 million buyout of the company's mining products unit before flipping it to a competitor.

The suit alleges that seven hours after Castle Harlan bought Norcast Wear Solutions Inc. in July 2011, it flipped the unit to Australian company and Norcast competitor Bradken Ltd., pocketing a $25 million fee in the process.

Norcast alleges...
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