Chancery Greenlights Suit Over Sprint's $3.6B Clearwire Deal

Law360, Wilmington (June 18, 2014, 8:45 PM EDT) -- A Delaware Chancery judge on Wednesday declined to dismiss a hedge fund's suit over Sprint Nextel Corp.'s $3.6 billion takeover of Clearwire Corp, finding the allegations for breach of fiduciary duty were sufficient to pass the pleading stage.

Units of Aurelius Capital Management LP filed suit last year claiming Sprint used its influence as Clearwire's majority shareholder to bully the board and minority investors into accepting an underpriced $5 per share deal, which closed in July 2013. Sprint and the directors moved to toss the suit, contending the...
To view the full article, register now.