Steak ‘n Shake Inc. sued lender Fortress Investment Group LLC after the burger chain paid off debt owed to avoid bankruptcy, accusing Fortress of abusing confidential information to mount a takeover bid.
The Indiana-based milkshake-and-burger chain, backed by entrepreneur Sardar Biglari, said Fortress obtained sensitive information during negotiations for a possible real estate deal with Steak ‘n Shake and then used that knowledge to build a $ 89 million position in the business. the loans.
After acquiring the loans, Fortress clarified that it “would not accept a negotiated repayment” and said it “would force the company to repay the loans in full or file for bankruptcy,” according to the complaint.
Steak ‘n Shake paid off the loans in full on Friday, spending nearly $ 103 million to pay off debts and avoid bankruptcy, the company said.
The Steak ‘n Shake lawsuit, filed in Marion County, Indiana, Superior Court on Friday, seeks to recover alleged losses from Fortress stock.