Harbinger Entitled to $50 Million Reduction of OM Group’s U.S. Insurance Business, N.Y. Federal Judge Rules

NEW YORK — An affiliate of Harbinger Capital Partners LLC is entitled to a $50 million reduction of the post-closing purchase price of OM Group (UK) Limited’s U.S. insurance business, because Harbinger used its “reasonable best efforts” in attempting to secure regulatory approval of the deal, a New York federal judge has ruled.

On March 18, Judge Claire R. Kelly of the U.S. District Court for the Southern District of New York concluded that Harbinger has met its obligations under the parties’ stock purchase agreement (SPA).

Harbinger F&G LLC purchased all of the outstanding shares of capital stock of Old …