#United States #Class Action #Wilmington #Settlement #Cornerstone Brands

Class Action Settlement Announcement for Cornerstone Building Brands

A significant announcement has emerged regarding a class action lawsuit involving Cornerstone Building Brands, Inc. (NYSE: CNR). The legal representatives, Labaton Keller Sucharow LLP and Block and Leviton LLP, have reached a proposed settlement aimed at benefiting all record holders and beneficial owners of Cornerstone's common stock. This comes after a cash transaction where shares were redeemed at $24.65 per share on July 25, 2022.

Background of the Lawsuit

The case, filed under the court of Chancery in the State of Delaware (C.A. No. 2023-0092-JTL), focused on the take-private transaction between Cornerstone and Clayton Dubilier & Rice (CD&R). As a result of this transaction, shareholders now have the opportunity to participate in a proposed settlement amounting to $45 million, which aims to resolve claims against them arising from this deal.

Who is Affected?

This settlement affects all individuals and entities that held shares in Cornerstone, who consequently received cash compensation during the transition of the company becoming privately held. Notably, heirs and successors to these shareholders are also included in the settlement class.

Proposed Settlement Details

As per the negotiations, the amount earmarked for the settlement is substantial, totaling $45 million. While this amount will be allocated among the Class members, the specifics concerning distribution are outlined in the Stipulation and Agreement of Settlement dated February 24, 2025. The proposed settlement, if approved, will resolve all pending claims against the involved defendants within the lawsuit.

Important Upcoming Dates

A critical hearing for the settlement will occur on May 29, 2025, at 9:15 a.m. This session, presided over by Vice Chancellor J. Travis Laster, will deliberate on whether the proposed settlement is reasonable and fair to all class members. Additionally, it will address the allocation of the net settlement fund and potential attorney fees sought by the plaintiffs.

Interested parties can attend the hearing in-person or via Zoom, depending on the court's discretion. Updates concerning the hearing, including any last-minute adjustments or the status of remote participation, will be posted on the settlement website: CornerstoneBuildingStockholderLitigation.com.

Rights of Class Members

As a class member, you may be entitled to a share of the net settlement fund—a monetary pool that will be distributed following a proposed plan of allocation. Notably, eligible class members will receive compensation without needing to submit a claim form, simplifying the process considerably.

Class members wishing to express concerns or objections regarding the settlement, distribution plans, or attorney fees must ensure these are submitted by May 7, 2025. Specific directions for filing objections can be found in the notice provided to class members.

Conclusion

This class action settlement presents a pivotal opportunity for affected shareholders of Cornerstone Building Brands, Inc. It is crucial for stakeholders to stay informed about the hearing details and subsequent recommendations from the court. With a resolution on the horizon, the outcome could significantly impact the financial stakes of all class members involved.