The Zohar investment funds at the heart of Lynn Tilton’s $2.5 billion distressed-debt empire sued their founder Monday, accusing Ms. Tilton of pillaging more than $1 billion from investors and the troubled companies she manages. Through a “toxic mix of fraud, theft and mismanagement,” Ms. Tilton stole money from the Zohar funds and from the troubled companies, siphoning hundreds of millions of dollars in fees and assets from a...

Source: Wall Street Journal January 16, 2017 22:09 UTC