American Industrial Partners Accused of Rev Group Buyback Scheme

An investor sued Rev Group Inc. board members and a major private equity backer, claiming they engineered a series of stock buybacks aimed at letting American Industrial Partners LP gain a majority stake without spending a dime.

The lawsuit, filed Tuesday, accuses the investment firm of exploiting its board influence to push Rev Group into buybacks worth up to $175 million. By taking publicly held shares off the market, the scheme will indirectly increase AIP’s ownership, giving it a backdoor path to the type of corporate control that normally requires investor approval and a premium payment, according to the complaint. ...