In re BGC Partners, Inc. Derivative Litigation
|Court:||Court of Chancery for the State of Delaware|
|Case Number:||C.A. No. 20018-0722-AGB|
|Judge:||Chancellor Andre G. Bouchard|
|Case Contacts:||Jeroen van Kwawegen, Andrew Blumberg, Christopher J. Orrico|
On February 12, 2019, through their counsel, BLB&G and Grant & Eisenhofer, P.A., Plaintiffs Roofers Local 149 Pension Fund and Northern California Pipe Trades Trust Funds filed a Verified Amended Stockholder Derivative Complaint (the “Complaint”), derivatively on behalf of BGC Partners, Inc. (“BGC” or the “Company”), against (i) members of BGC’s board of directors; (ii) BGC’s controlling stockholders, Howard Lutnick, Cantor Fitzgerald, L.P., and CF Group Management, Inc.; and (iii) BGC’s CEO Howard Lutnick (in his capacity as an officer), for breaches of fiduciary duty. The Complaint challenges BGC’s 2017 acquisition of Berkeley Point from an affiliate of Cantor Fitzgerald for an inflated $875 million. The Complaint alleges that this unfair deal was forced on BGC investors to benefit Lutnick, who held a substantially larger economic stake in Cantor Fitzgerald than BGC. As a result, Lutnick benefitted personally from BGC’s overpayment for Berkeley Point, at the expense of the Company and its public stockholders.
Defendants filed motions to dismiss the Complaint and, on June 6, 2019, the Delaware Court of Chancery heard arguments on Defendants’ motions. On September 30, 2019, the Court denied Defendants’ motions. (Click on "Case Documents" at left to view the Court's Opinion.) BLBG continues to vigorously prosecute this action.
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