Tile Shop Delisting Part of Fraudster’s Control Bid, Suit Says

The board of Tile Shop Holdings Inc. was hit with a Delaware lawsuit claiming its plan to “go dark” and delist the company from the NASDAQ is part of a scheme to deflate its stock so its founder, a “repeat fraudster,” can retake control.

Rather than attempting to block the change in control or exact a premium for it, the Tile Shop’s directors are intentionally tanking its stock so Robert A. Rucker, who took the company public in 2012, can buy it back at “depressed” market prices, according to the complaint. The derivative suit was filed in the Chancery Court ...