Teekay Offshore is the target of a lawsuit from an aggrieved hedge fund, which claims the offshore vessel partnership misrepresented its July deal with Brookfield Business Partners.
Cobalt Capital Management alleged it was "fraudulently induced" to sell preferred shares back to Teekay at a price that was "significantly lower" than what they were worth.
The New Jersey-based Cobalt, with $619m in equities under management, claims Teekay misled the firm about how the deal with Brookfield was structured.
