D.E. Shaw Seeks $71 Million in China School Operator Dispute

Hedge fund giant D.E. Shaw & Co. is demanding more than $71 million from a Chinese school operator it invested in that failed to sell shares to the public as promised, according to a recent lawsuit.

New York-based D.E. Shaw, which manages more than $55 billion, said it spent $20 million in 2013 to acquire preferred shares in Ledudu Education, a private company that operates schools and kindergartens in China. The shares could be redeemed with an 18% annualized return if Ledudu didn’t complete an initial public offering by Sept. 1, 2015, D.E. Shaw said in the lawsuit filed Jan. 12 in the Cayman Islands.