Nick Pritzker Hit With New Lawsuit Over Juul Corporate Bailout

Hotel billionaire Nick Pritzker siphoned hundreds of millions from Juul Labs Inc. by manipulating the terms and timing of his $1.2 billion lifeline to the vaping company, according to an unsealed lawsuit.

Shareholders are suing Pritzker, venture capitalist Riaz Valani, Juul’s co-founders, and several other board members, bringing a second court challenge to the rescue financing that let the company avert a bankruptcy over its marketing practices. A previous suit by an unrelated group of investment funds settled on undisclosed terms in July.

The dispute stems from a barrage of legal challenges confronting Juul over allegations it promoted its ...