Gupta browbeat InfoGroup's board into selling the company to CCMP Capital Advisors LLC for $463 million, shortchanging investors, the fund said.
Gupta was described in the suit as favouring a quick sale after spending lavishly on luxury goods and travel and consulting fees for former President Bill Clinton and Hillary Clinton.
Gupta, according to the World-Herald, said that his relationship with the Clintons earned huge dividends for Infogroup and that the company was fortunate to attract the buyout offer it did get.
Gupta also used company money to support favoured Clinton charities and for luxury cars used for personal and family transportation, the shareholder suit alleged.
Gupta said his relationship with the Clintons, including money spent in their direction, was repaid to Infogroup many times over, leading to business with the Democratic National Committee and other organizations.
"Through the Clintons, we got to know new potential customers 'and big ones'," Gupta said. "Companies like Google and Yahoo."
Meanwhile, pursuant to the Delaware court order, lawyers have issued a notice to all holders of Infogroup stock between Aug 20, 2008 and July 1, 2010 of pendency and proposed settlement of class action.
The Delaware court is scheduled to hold a settlement hearing April 30 to determine whether it should grant final approval and certification of the proposed settlement.
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