BNBuilders Sued by Ex-Worker Over $206 Million Stock Plan Deal

BNBuilders Inc. was hit with a proposed class action challenging a $206 million transaction in which the construction firm became worker-owned through an employee stock ownership plan.

The 2021 transaction was a bad deal for BNBuilders workers because the purchase price didn’t reflect the stock plan’s failure to obtain true control of the company despite purportedly acquiring 100% of its stock, a former BNBuilders employee said in the complaint. The price also failed to reflect other relevant factors, including supply chain disruptions, persistent inflation, and a lack of marketability for the firm’s stock, according to the complaint.

The Sept. ...