CD&R, Cornerstone Reach $45 Million Accord in Buyout Dispute (1)

Claims that Cornerstone Building Brands Inc.‘s board manipulated the company’s forecasts amid pressure from Clayton, Dubilier & Rice LLC to approve a $5.8 billion take-private buyout will be resolved with a $45 million cash settlement, a Delaware judge ruled Thursday.

The accord also resolves pending federal securities claims, Vice Chancellor J. Travis Laster said in a Delaware Chancery Court hearing.

“The game being played was, ‘We’re not making an offer, but we’re willing to acquire you at Price X if you would accept it,” he said, adding there’s a “high likelihood” the claims would succeed and the recovery was ...