Current and former Cornerstone Building Brands Inc. board members, along with its backers at Clayton, Dubilier & Rice LLC, are facing litigation over claims they manipulated the company’s forecasts to lower the price of its $5.8 billion take-private buyout.
A pension fund and a hedge fund filed suit in Delaware, claiming Cornerstone’s leadership adjusted certain projections downward, timed the transaction to avoid factoring in positive earnings, and kept shareholders in the dark about the planned sale of a high-performing segment.
They made those moves in an effort to justify the “unfairly low price CD&R demanded” after the private equity firm ...
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