Kaskela Law LLC has filed a stockholder derivative and class action complaint on behalf of NCI Building Systems, Inc. (“NCI”) n/k/a Cornerstone Building Brands (NYSE: CNR) and the company’s stockholders in the Delaware Court of Chancery (Case No. 2018-0828-JTL).
The complaint alleges that NCI’s controlling stockholder, private equity firm Clayton, Dubilier & Rice LLC (“CD&R”), forced the Company into merging with Ply Gem Parent, LLC (“Ply Gem”) (the “Merger”), another CD&R portfolio company, and caused NCI to overpay for Ply Gem. Since the announcement of the Merger, NCI’s stock price has significantly declined in value.
On February 10, 2020, Vice Chancellor Laster denied defendants’ motions to dismiss the complaint. The Court’s Memorandum Opinion is available at https://courts.delaware.gov/Opinions/Download.aspx?id=301650.
On August 25, 2021, the parties to the litigation agreed to a $100 million settlement.