Hedge Fund Sculptor Sued by Billionaire Founder Over Rithm Deal

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Hedge Fund Sculptor Sued by Billionaire Founder Over Rithm Deal
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(Bloomberg) -- Dan Och and a group of former executives of Sculptor Capital Management Inc. sued the hedge fund and proposed acquirer Rithm Capital Corp...

-- Dan Och and a group of former executives of Sculptor Capital Management Inc. sued the hedge fund and proposed acquirer Rithm Capital Corp., saying the $676 million deal would shortchange investors in favor of protecting Sculptor Chief Executive Officer Jimmy Levin’s job.

“His ongoing campaign against the company, including his conduct throughout the special committee’s process, has cost stockholders significant value,” the panel said. “His complaint is replete with materially misleading statements, and Sculptor intends to vigorously defend itself.” In his suit, Och asked the court to bar Rithm from voting new shares of Sculptor stock acquired from Delaware Life Insurance in the form of warrants. Those shares — added to those held by Sculptor’s current management — give Levin and his supporters two-thirds of the voting power they would need to approve the Rithm offer.

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