Foundation Building Materials Inc. and Lone Star Funds affiliates have agreed to pay $26 million to resolve litigation over the drywall distributor’s $1.37 billion sale to American Securities LLC.
The settlement, disclosed Monday in Delaware’s Chancery Court, would resolve shareholder claims targeting Lone Star, insiders at Foundation, and two major financial firms that advised on the deal. The lawsuit said Lone Star orchestrated the transaction to secure an overpriced buyout of a tax agreement tied to Foundation’s status as an umbrella partnership rather than a traditional corporation.
The accord—calling for Foundation to pay $17.8 million and Lone Star $8.2 million—"shall ...
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