GPGI Inc. insiders schemed to siphon value by spinning off a separate entity that’s exploiting its de facto corporate control to raise its own management fees through an acquisition binge, according to an unsealed lawsuit.
A GPGI investor is suing Resolute Holdings Management Inc. and its directors, all of them also on the board at GPGI, the former CompoSecure Inc. The management pact—giving Resolute broad rights over GPGI and annual fees worth 10% of adjusted earnings—has steered them toward transactions that jack up EBITDA, even if they harm the business, according to Wednesday’s filing.
The shareholder suit in Delaware’s Chancery …