Ackman’s Pershing Seeks to Toss Suit Over Howard Hughes Deal

Pershing Square sought to toss what it called a “facially defective” shareholder lawsuit accusing founder Bill Ackman of bullying Howard Hughes Holdings Inc. directors into a deal that increased the investment firm’s stake at an unfairly low price.

The investors claimed Pershing Square got “operational and managerial” control of Howard Hughes with the investment firm’s $900 million purchase of newly-issued shares, which increased its stake in the real estate company to almost 47% from about 37%, according to the proposed class action suit in Delaware Chancery Court.