Sculptor Board Sued for Favoring Rithm’s $639 Million Buyout Bid

  • Investor claims deal unfairly engineered to block higher offer
  • Ex-founder Och, other former executives oppose Rithm’s offer
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Sculptor Capital Management Inc. executives were accused in a lawsuit of engineering a proposed $639 million acquisition of the fund by rival Rithm Capital Corp. in a way that is unfairly blocking a higher bid.

Chief Executive Officer Jimmy Levin and other directors shortchanged investors by using non-disclosure agreements tied to the deal to prevent stockholders from considering a higher offer from a group led by Boaz Weinstein that includes billionaires Bill Ackman, Marc Lasry and Jeff Yass, Sculptor investor Gilles Beauchemin said Monday in a Delaware Chancery Court lawsuit. Still, such non-disclosure pacts are common in big US merger and acquisition agreements.