BGC Wins Lawsuit Challenging Berkeley Point Purchase; Judge Rules Deal Entirely Fair

(RTTNews) - BGC Partners, Inc. (BGCP), a brokerage and financial technology company, Monday announced that it has won a lawsuit that challenged the purchase of Berkeley Point Capital, LLC.

The lawsuit alleged that BGC overpaid to acquire Berkeley Point. BGC purchased the Berkeley Point agency lending business in 2017.

On Friday, Vice Chancellor Lori Will of the Delaware Court of Chancery ruled that the purchase price was entirely fair and that all parties, including BGC's Special Committee, Lutnick, and Cantor Fitzgerald, acted consistent with their duties to BGC's shareholders.

The Court's decision comes after a five-day trial in October 2021.

The company noted that the Court's finding of entire fairness applies to both the price BGC paid for Berkeley Point and the process through which BGC's Special Committee negotiated with Cantor Fitzgerald to acquire the company.

The Court found that "Berkeley Point was, by all accounts, a unique asset particularly appealing to BGC" and that the price negotiated by BGC's Special Committee and agreed to by Cantor Fitzgerald was at the "lower end" of a range of reasonable prices.

In 2018, BGC spun off its global commercial real estate services business into Newmark Group, Inc.