Home Depot settles lawsuit with shareholders
According to Home Depot’s annual report filed late last week, the company has settled a lawsuit filed by shareholders over compensation issues stemming from the resignation of former CEO Robert Nardelli in January 2007.
Home Depot will settle the suits for $14.5 million in attorneys fees and reimbursements of expenses, according to the document. The retailer also agreed to “maintain or adopt certain corporate governance practices,” ostensibly to avoid such issues in the future. The settlement agreement was reached March 28.
In January 2007, the company announced it would give Nardelli a $210 million severance package, angering some shareholders. Shareholders involved in the suit alleged, “breach of fiduciary duty, abuse of control, gross mismanagement, waste of corporate assets and unjust enrichment in connection with the company’s return-to-vendor, stock option, and compensation practices.”
The agreement is pending the approval of the Superior Court of Fulton County, Ga.
In related news, Home Depot also discussed an ongoing lawsuit by current and former hourly employees who say they were forced to work off the clock, did not receive work breaks or “otherwise … were not paid for work performed.” The class action spans from the middle of 2001 to the middle of 2007. The company said it “is vigorously defending itself against these actions.”
Alpine Lumber expands to New Mexico
Alpine Lumber has purchased five units from AC Houston, the western chain of lumberyards headquartered in North Las Vegas. This will be the Colorado pro dealer’s first foray into New Mexico. The new locations are in Angel Fire, Gallup, and Farmington, N.M.; as well as Durango and Crested Butte, Colo.
Bill Miller, Alpine’s chairman, CEO and president, confirmed the purchase in a phone interview with HCN, but said he would have no further comment. Before the acquisition, Alpine operated 10 lumberyards along Colorado’s Front Range and Western slope, two truss shops, two millwork operations, three professional paint supply operations and a pre-built stair shop.
Based in Westminster, Colo., outside of Denver, Alpine Lumber is a 100 percent employee-owned company that reported $189 million in sales in 2006.
AC Houston opened in Kansas in 1884 and relocated its headquarters to Las Vegas in 1998. The third-generation lumberyard operated 11 locations, including truss and wall panel plants, in five western states prior to the Alpine Lumber deal. Sales in 2006 were $157 million.
Chief executive Robert Houston said the company will continue to do business from its yards in Las Vegas, Ketchum, Idaho, and Indio and Sacramento, Calif.
“Absolutely,” Houston told HCN. “We will continue to do so for many years to come.”
Allied Building Products gains FSC certification
Allied Building Products has been granted Forest Stewardship Council (FSC) certification for 27 of its locations through the Rainforest Alliance’s SmartWood program, according to a company announcement. The East Rutherford, N.J.-based building materials distributor, which operates more than 180 branches nationwide, will sell FSC-certified products in the following markets: Anchorage, Ala.; Phoenix Ariz.; Anaheim, Berkeley and Norco, Calif.; Denver; New Haven, Conn.; Vero Beach, Fla.; Honolulu; Arlington Heights, Ill.; Fraser, Grand Rapids and Ypsilanti, Mich.; Annapolis, Md.; Brooklyn Center, Minn.; Bismarck and Fargo, N.D.; East Rutherford and Elizabeth, N.J.; Astoria and Hicksville, N.Y.; Toledo, Ohio; Levittown, Pa.; Cranston, R.I.; Provo, Utah; Richmond, Va.; and Edmunds, Wash.
Among the FSC-certified products offered will be lumber, panels (plywood and OSB), moldings, and doors and windows in select markets.
Asubsidiary of Oldcastle, the North American arm of CRH, Allied Building Products operates in 29 states, selling to the residential and commercial markets. It specializes in roofing, siding, waterproofing, windows and interior/exterior building materials.