Bloomberg Law
March 23, 2023, 7:04 PM

Construction Partners Sued on Liability Shield Pushed by Backers

Mike Leonard
Mike Leonard
Legal Reporter

An investor sued Construction Partners Inc., challenging its alleged move to create a liability shield for senior executives based on an investor vote dominated by insiders with conflicts of interest.

The proposed class action follows similar cases brought against Fox Corp. and Snap Inc. It accuses the infrastructure company’s leaders of illegally putting the liability shield to a combined vote of all investors, including affiliates of its private equity sponsor, SunTx Capital Partners, which controls the business through supervoting preferred shares.

The dispute is the third in a series of investor cases challenging corporate maneuvers aimed at significantly curtailing the ...

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