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Steak ’n Shake Sues SoftBank’s Fortress in Dispute Over Lending

  • Fortress threatened forced Chapter 11, according to complaint
  • Firm took debt position after confidential deal talks
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Steak ’n Shake Inc. is suing Fortress Investment Group in an Indiana court, accusing the investment firm of misusing confidential business information in a scheme to take control of the restaurant chain’s assets.

Fortress obtained financial information about Steak ’n Shake in mid-2020 during negotiations for a potential real estate deal, then used the knowledge to inform an attempt to buy the company’s loans, force it into bankruptcy and acquire the chain through a so-called credit bid, the lawsuit alleges.