PershingSquare (PS) Sued Over $900M Howard Hughes Takeover and Control Agreement

Pershing Square (PS) is named in a Delaware chancery court class action alleging an unfair $900 million share purchase and governance agreement that shifted control of Howard Hughes Holdings (HHUG) to the firm. The suit, unsealed Feb 13, 2026, claims PS “coerced and bullied” HHUG directors into a deal at an “unfair” price, giving it about 47% control and executive chairman status for Ackman. The purchase was made at a 48% premium to the prior day's closing price. The May 2025 agreement, part of a broader strategy to build a Berkshire Hathaway-style platform, is central to the dispute. Plaintiffs allege Ackman used threats to force a control transfer without a control premium for minority shareholders and seek to unwind the arrangement. Pershing Square issued no comment. The case follows Delaware’s recent corporate law overhaul, which has drawn criticism and potential legal challenges.