The lawsuit argues that Ackman’s threats to board members pressured them into accepting an “unfair” price without a control premium for minority investors. Plaintiffs assert Pershing Square gained operational and managerial control at shareholders’ expense. A Delaware Chancery Court lawsuit was unsealed alleging Pershing Square coerced Howard Hughes directors into approving a transaction that disadvantaged minority shareholders. The complaint names Pershing Square, Bill Ackman and company directors as defendants. In May investors approved Pershing Square’s $900 million acquisition of newly issued shares at a 48% premium, raising its stake to nearly 47% from 37%. The agreement also entitles Pershing Square to quarterly management fees and seats Ackman as executive chairman. Pershing Square has labeled the lawsuit as meritless, defending the transaction’s terms and pricing. Ackman’s long-term plan is to model Howard Hughes after Berkshire Hathaway by leveraging capital to acquire controlling interests in other businesses.