Resideo Board Hit With Suit Over Honeywell Spin, Stock Drop (1)

July 2, 2021, 2:34 PM UTCUpdated: July 2, 2021, 3:43 PM UTC

A Resideo Technologies Inc. investor sued its board in Delaware, claiming the home automation company was doomed from the start by a 2018 spinoff from Honeywell International Inc. that “cobbled together” underperforming business units and saddled them with debt.

The lawsuit, made public late Thursday in Delaware Chancery Court, accuses Resideo’s board of keeping shareholders in the dark about the “systemic” problems it faced after emerging as a standalone company from “Honeywell’s master plan to benefit itself to the detriment of Resideo.”

“Resideo lacked operational and governance cohesion, as a result of being created from a cluster of unrelated business ...

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